TSMC’s chips made for a client ‘end-up with’ Chinese Huawei

HONG KONG

Taiwanese chipmaking giant TSMC halted shipments to a customer this month after its semiconductors were sent to China's Huawei, a Taipei government official told AFP, potentially breaching U.S. sanctions.

TMSC is the world's largest contract manufacturer of chips.

Huawei, the world's leading equipment maker for fifth generation mobile internet networks, has been embroiled in a tech war between Beijing and Washington.

The United States slapped sanctions on Huawei in 2019, and expanded them the following year, over fears its technology could be used for Beijing's espionage operations. Huawei denies the allegations.

The sanctions cut Huawei off from global supply chains that gave it access to U.S.-made components and technologies.

TSMC discovered on Oct. 11 that chips made for a "specific customer" had ended up with Huawei, the Taiwanese official with knowledge of the incident told AFP.

TSMC "immediately activated its export control procedures," halting shipments to the customer and "proactively" notifying U.S. and Taiwan authorities, the official said.

In a statement, TSMC said it was a "law-abiding company" and had not supplied Huawei since mid-September 2020 in compliance with export controls.

"We proactively communicated with the U.S. Commerce Department regarding the matter in the report," TSMC said, apparently referring to media reporting of the incident.

"We are not aware of TSMC being the subject of any investigation at this time."

Taiwan's economic ministry told AFP on Thursday that TSMC had informed them about the incident, but had not identified their client.

"There was already an interaction and a contractual partnership in place, so it's an old client," the ministry said, adding that no shipments have been made since Oct. 11.