## TSMC Notifies U.S. About Chip Found in Huawei Product Amid AI Chip Demand Surge
Taiwan Semiconductor Manufacturing Company (TSMC), the world’s leading semiconductor foundry, has reportedly notified the U.S. Commerce Department about the discovery of one of its chips in a Huawei product. This revelation comes after TechInsights, a tech research firm, discovered the TSMC chip within Huawei’s Ascend 910B, considered the most advanced AI chip from a Chinese company.
The TSMC chip is part of a multi-chip system within the Huawei product, according to reports. TechInsights alerted TSMC about its findings before publishing them, prompting the company to contact the U.S. Commerce Department a few weeks ago.
TSMC has confirmed that it ceased supplying chips to Huawei in mid-September 2020, following the implementation of U.S. export control regulations. Huawei, on the other hand, has also stated that it has not procured any chips from TSMC since 2020.
“TSMC is a law-abiding company and we are committed to complying with all applicable rules and regulations, including applicable export controls,” a company spokesperson said in a statement.
This disclosure comes at a time of heightened demand for AI chips, particularly from companies like Nvidia, whose stock has surged to record highs. The U.S. Commerce Department is currently investigating TSMC for potential export control violations, which could disrupt chip production for companies like Apple.
Despite these challenges, TSMC’s strong performance in the third quarter and its ongoing technological advancements, such as the 3nm chip, have led to bullish forecasts from analysts. Industry experts anticipate a bull market driven by AI, despite short-term fluctuations, indicating that the demand for advanced chips is likely to continue.
TSMC’s disclosure highlights the ongoing tensions between the U.S. and China in the technology sector. As the demand for AI chips continues to grow, the role of companies like TSMC and the impact of export control regulations on chip production will be critical in shaping the future of the technology industry.
