TSMC blocks Huawei's covert AI chip manufacturing attempt

TSMC has identified and thwarted Huawei's apparent attempt to circumvent US export restrictions through a proxy customer seeking to manufacture advanced AI chips. The giant chipmaker from Taiwan noticed that a design they received was very similar to Huawei's Ascend 910B processor, so it quickly told the US authorities.

They figured something was off when they checked out the specs for a chip order that looked a lot like Huawei's HiSilicon Ascend 910B, a processor made for training large language models. TSMC had made an earlier version of this chip before the US slapped sanctions on Huawei in 2020.

Huawei was trying to tap into TSMC's advanced manufacturing capabilities instead of using SMIC's less advanced 7nm tech. Since the US export controls kicked in, Huawei has been having difficulty getting access to the latest semiconductor manufacturing services, forcing them to pursue homegrown alternatives.

The discovery highlights Chinese technology firms' ongoing challenges under US trade restrictions. Currently, regulations say that TSMC and other American tech manufacturers must get explicit permission from the US Department of Commerce before working with Huawei.

This incident may be part of Huawei's broader strategy to maintain access to advanced Western tech. The company has tried different tricks before to obscure its supply chain connections, especially when there's a chance their component sources might get cut off.