TSMC cuts ties with Singapore client after AI chip found in Huawei device
TSMC discovered a chip it manufactured inside a Huawei artificial intelligence processor and initiated a customer review. The company subsequently terminated its business relationship with PowerAIR, a Singapore-based firm, reportedly after determining it may have violated U.S. export controls on Huawei.
What happened
TSMC discovered a chip it had manufactured inside a Huawei artificial intelligence processor after being found in Huawei's equipment. TSMC then launched a customer review and subsequently terminated its business relationship with PowerAIR, a Singapore-based company registered in September 2023 that provides engineering design and consulting services.
According to sources cited by the South China Morning Post, TSMC determined that PowerAIR may have violated U.S. export controls on Huawei. PowerAIR had no official website, publicly listed phone number, or email address, making it difficult to contact or verify its operations.
Reported impact
TSMC ended its supply relationship with PowerAIR. The company reported the incident to U.S. and Taiwan government authorities, consistent with its stated practice of ceasing to supply Huawei since 2020.
Index analysis
This is the second known instance where TSMC identified a customer potentially circumventing U.S. export restrictions on Huawei through intermediaries. In October 2024, TSMC halted supplies to Sophgo after discovering that chips it manufactured for Sophgo matched components found in Huawei's Ascend 910B AI processor.
Governance controls
TSMC stated it has not supplied products to Huawei since 2020, when U.S. sanctions took effect. The company reported the PowerAIR incident to U.S. export control authorities and Taiwan's government.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.