TSMC Suspends Shipments to China-Based Chip Designer Sophgo

According to two individuals familiar with the matter, Taiwan Semiconductor Manufacturing Company has suspended shipments to the China-based chip designer Sophgo following the discovery of one of its chips in Huawei's AI processor. The individuals stated that Sophgo had ordered chips matching those found in Huawei's Ascend 910B. Huawei's acquisition of this technology is restricted to protect U.S. national security. Reuters was unable to determine how the chip ended up in Huawei's product. The U.S. Department of Commerce stated that it is aware of reports regarding potential violations of U.S. export controls but could not comment on whether any investigation is ongoing.