After finding a Huawei Ascend 910B AI accelerator chip with PowerAIR Technology in its supply chain, Taiwan Semiconductor Manufacturing Company (TSM, Technology) has severed ties with Singapore-based PowerAIR. This decision follows an internal review of the findings of a report by Canadian research firm TechInsights, which identified the TSMC-produced component in the Huawei processor.
It's the second company TSMC has cut ties with over the issue. The US also subsequently blacklisted mainland Chinese chip firm Sophgo after finding they violated US laws with Huawei and cut off the firm after the discovery. In 2020, US sanctions forced TSMC to stop providing chips to Huawei, and the company has already ceased supplying chips to Huawei. Investigating TSMC parts in Huawei's products highlights the overlap of geopolitics and ever-tightening global supply chains.
TSMC told Reuters that it has not delivered chips to Huawei since the sanctions went into effect and that it strictly adheres to US export restrictions. But Huawei has made headway in the Chinese market, launching new smartphones fuelled by chips made by another Chinese semiconductor provider, SMIC, which is also targeted by US sanctions.
Yet another reminder of the precarious balance for semiconductor companies navigating an uneasy playbook with US China trade restrictions and a call for technological independence — especially in AI and mobile hardware.
