Bloomberg reports indicate that Taiwan Semiconductor Manufacturing Company (TSM, Financial) identified chips produced for a specific client that ended up being used by Huawei. This situation potentially breaches U.S. sanctions aimed at curbing the advancement of semiconductor technologies in China. In response, TSM halted shipments to the client in mid-October and informed both U.S. and Taiwanese authorities for a more comprehensive investigation.
Huawei has been on the U.S. sanctions list since August 2020, preventing it from purchasing chips involving U.S. technology without government approval. TSM had previously communicated that it stopped all shipments to Huawei as of September 15, 2020. Huawei has also stated that, following amendments to the U.S. Commerce Department's Foreign Direct Product Rule in 2020, it has not acquired any chips manufactured by TSM.
Additionally, reports suggest that officials from the U.S. Bureau of Industry and Security met with TSM executives in mid-October, discussing supply chain issues related to TSM, including whether third-party distributors can supply restricted technology to China.
