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The Taiwan Semiconductor Manufacturing Company said it had warned the US government of a possible try to have it make artificial intelligence chips for Chinese tech giant Huawei bypassing export controls.
The Information, a technology news publication, reported last week that the Commerce Department is investigating whether TSMC violated U.S. export controls by making AI or smartphone chips for Huawei.
TSMC, the world's largest contract chipmaker, said it had alerted Washington itself to the issue.
“We have proactively communicated with the US Department of Commerce concerning the matter within the report. “We should not aware presently that TSMC is the topic of an investigation,” the corporate said in an emailed statement.
Two people conversant in the situation said TSMC recently notified the trading department after a customer ordered a chip just like Huawei's Ascend 910B, a processor designed for training large language models.
TSMC manufactured the precursor to the 910B chip before US sanctions took effect.
In recent years, Washington has used an ever-widening range of export controls to attempt to make it unattainable for Chinese firms to obtain or develop and manufacture probably the most advanced semiconductors. Huawei has been a key goal of this effort, reflecting the 2 superpowers' increasing competition for technology leadership.
One of the important tools of the export controls is a rule that bans chipmakers worldwide from using U.S. technology or equipment to make chips intended for Huawei or to be used in its products.
Since every semiconductor manufacturing facility or factory uses some special tools made within the US, this rule should prevent Huawei from sourcing chips made by TSMC. The Taiwanese company covers greater than 90 percent of the marketplace for probably the most advanced chips.
“TSMC is a law-abiding company and we’re committed to complying with all applicable rules and regulations, including applicable export controls,” the corporate said in its statement. “In accordance with regulatory requirements, TSMC has not shipped to Huawei since mid-September 2020.”
An individual near TSMC said that after receiving an order that raised doubts, the corporate spoke to each the affected customer and the trading department. The department's investigation into the problem is said to TSMC, but the corporate just isn’t the topic of an investigation, the person said.
Another person conversant in the situation said there had been “discussions” between the department and the corporate a couple of possible attempt to avoid export controls, but there was no evidence of malicious compliance violations by TSMC.
A Commerce Department spokesman said the Bureau of Industry and Security was aware that “possible violations of U.S. export controls have been reported.”
“We cannot comment on whether an investigation is underway. “BIS is committed to making sure compliance with the strict controls we’ve put in place in relation to China’s acquisition of advanced semiconductors,” the spokesperson said.
TSMC said it maintains a “robust and comprehensive export system” to make sure compliance. “If we’ve reason to imagine that there are potential issues, we are going to take prompt motion to make sure compliance, including conducting investigations and proactively communicating with relevant parties, including customers and regulators,” it added.
