TSMC chips found in Huawei AI processor through third-party purchases
TSMC chips were found in Huawei's Ascend 910B AI processor after being purchased by third parties, bypassing U.S. export controls on the sanctioned Chinese company. TSMC reported the incident to U.S. authorities and cut off suppliers, but American lawmakers questioned whether export controls are being adequately enforced.
What happened
TSMC chips were discovered in Huawei's Ascend 910B AI graphics processor (GPU), a product used to develop AI systems. The chips were purchased by third-party companies and ultimately reached Huawei, which is subject to strict U.S. sanctions and export restrictions.
TSMC notified the U.S. Department of Commerce about the incident on October 23 and discontinued shipments to the implicated companies.
Reported impact
Senator Mark Warner, chair of the Senate Select Committee on Intelligence, wrote to President Biden on October 30 stating that TSMC chips in Huawei products 'may cause serious consequences for U.S. national security.' Warner criticized 'repeated leadership failures' in enforcing U.S. export restrictions.
House China Committee Chair John Moolenaar called the incident a 'catastrophic failure' of U.S. export control policy and requested immediate responses from the Department of Commerce and TSMC.
Index analysis
The incident demonstrates how third-party intermediaries can circumvent U.S. export controls on advanced semiconductor technology. Huawei has been on the U.S. trade restriction list since 2019, requiring pre-approval from the U.S. government before exports of advanced chips.
The U.S. implements restrictions on high-end AI GPU chips to China to prevent development of advanced AI capabilities and weapons systems that could threaten U.S. security.
Governance controls
TSMC stated it had proactively reported the incident to U.S. commerce officials and cut off shipments. The U.S. Department of Commerce stated it had placed over 400 Chinese companies on trade restriction lists and created 'comprehensive' new control measures.
The incident raised questions about whether TSMC is complying with U.S. export control requirements on AI chips to China.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.