The advanced artificial intelligence (AI) chip released by China’s Huawei last year has been found to contain semiconductors made by Taiwan’s TSMC, despite stringent U.S. export controls. This revelation has intensified the ongoing tech rivalry between the U.S. and China, highlighting the complexities of enforcing export regulations in the global semiconductor supply chain.
On Oct. 22, Financial Times and Reuters reported that TechInsights, a company specializing in reverse engineering and analysis of semiconductor products, disassembled Huawei’s “Ascend 910B” AI chipset and confirmed the use of TSMC products. This AI chipset was unveiled by Huawei early last year, marking a significant advancement in their AI capabilities.
On Oct. 18, The Information, an American media outlet specializing in information and technology (IT), reported that the U.S. Department of Commerce was investigating whether TSMC manufactured smartphones and artificial intelligence semiconductors for China’s Huawei.
TSMC stated on Oct. 18 that it would take immediate action to ensure compliance with regulations, including actively communicating with relevant authorities. It further emphasized, “We have not supplied semiconductors to Huawei since mid-September 2020 to comply with regulatory requirements.”
TSMC issued an email statement on Oct. 21, saying, “We have actively communicated the reported matters with the U.S. Department of Commerce.” The U.S. Department of Commerce also acknowledged the situation, stating, “We are aware of reports regarding potential export control violations.”
The supply route of TSMC’s semiconductors to Huawei remains unknown, adding another layer of complexity to the enforcement of export controls. On Oct. 22, the Financial Times, citing sources, reported that TSMC received an order for a chip similar to the Ascend 910B from a customer and informed the U.S. Department of Commerce.
The U.S. Department of Commerce has been investigating TSMC’s involvement in manufacturing AI semiconductors for Huawei. This investigation follows a series of escalating export controls imposed by the U.S. since 2020, aimed at limiting China’s access to cutting-edge technologies such as AI and semiconductors. In May 2020, the U.S. Department of Commerce announced that semiconductor companies using any U.S. technology must obtain government approval to sell products to Huawei. Consequently, TSMC-manufactured semiconductors could no longer be used in Huawei products.
This incident underscores the intensifying competition between the U.S. and China over advanced technology. In the broader context, China is enhancing its hardware competitiveness by establishing a 64 trillion won semiconductor fund, aiming to become self-sufficient in semiconductor production. This strategic move is part of China’s efforts to reduce reliance on foreign technology and bolster its domestic semiconductor industry.
Huawei released its latest operating system, ‘Harmony OS 5.0’, which includes 15,000 basic applications, on Oct. 22. Harmony OS is part of Huawei’s broader strategy for technological independence, developed as an alternative to Google’s Android operating system.
As the U.S. and China continue to vie for dominance in the tech industry, the implications of this rivalry extend beyond the two nations, affecting global trade, technology development, and international relations. The ongoing investigation and its outcomes will likely have significant repercussions for the global semiconductor supply chain and the future of U.S.-China tech relations.
