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businesspress > Blog > News > The US has Been Warned by TSMC about a Possible Violation of China’s AI chip Regulations
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The US has Been Warned by TSMC about a Possible Violation of China’s AI chip Regulations

BusinessPress
Last updated: October 23, 2024 3:25 am
BusinessPress
Published October 23, 2024
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Reuters, October 22 On Tuesday, Taiwan Semiconductor Manufacturing Company (TSMC) (2330.TW), which opens a new tab, announced that it had alerted the US to a possible attempt by Huawei to get around US export restrictions that forbid the chipmaker from making AI chips for the Chinese firm. Citing the necessity to curtail the capabilities of the Chinese military, the U.S. administration banned the transfer of advanced AI processors to China two years ago.

The business said that it has not supplied to Huawei since mid-September 2020 and that “we are not aware of TSMC being the subject of any investigation at this time.” Shares of TSMC that are listed in the US were down 1.5%. A key component of export controls is a regulation that forbids foreign chip producers from using American machinery or technology to make chips for Huawei or its goods.

The United States has increased its use of export controls in recent years to prevent Chinese businesses from acquiring, creating, or producing sophisticated semiconductors.
One of the main targets of these initiatives is Huawei, which embodies the escalating technological competition between Washington and Beijing.

According to a Financial Times report earlier in the day that cited persons familiar with the situation, TSMC notified the U.S. Commerce Department after a customer placed orders for a chip resembling Huawei’s Ascend 910B, a processor intended for massive language model training.

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