The US Government is set to blacklist Chinese company Sophgo for its involvement with a TSMC-made chip found in a Huawei AI processor, Reuters has reported citing sources.
This move is said to be part of US efforts to restrict Chinese companies linked to Huawei, which has been on the US Entity List since 2019.
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Associated with bitcoin mining equipment supplier Bitmain, Sophgo attracted attention after a chip in Huawei’s Ascend 910B system matched one it ordered from Taiwan Semiconductor Manufacturing Company (TSMC).
The US Commerce Department recently added other entities linked to Huawei to its restricted trade list, and Sophgo is reportedly next.
The Entity List includes companies whose activities conflict with US national security and foreign-policy interests. Listed parties face export restrictions, requiring a license to receive goods and technology, which is often denied.
Huawei has been subject to these restrictions, with foreign-made chips being barred from being shipped to the company since 2020.
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By GlobalDataSophgo has not commented on the latest development, the news publication added. However, the company stated in October that it “has never been engaged in any direct or indirect business relationship with Huawei”.
Sophgo supplies to local governments and state-owned companies such as China Telecom. In addition, Chinese state-run universities and police stations have acquired Sophgo and Bitmain AI chips over the past two years for AI tool development and surveillance upgrades.
Tech research company TechInsights discovered the TSMC chip in the Huawei 910B and informed TSMC, which notified the US Commerce Department. However, Huawei stated in October it has not produced chips via TSMC since the 2020 US export restrictions.
A Taiwan official confirmed that TSMC alerted authorities and initiated a detailed investigation.
Starting 11 November, the US ordered TSMC to stop shipments to China of advanced chips potentially used in AI applications.
In August, Huawei announced plans to release a new AI chip called the Ascend 910C in the Chinese market.
