October 22, 2024 at 01:56PM
TSMC warned US officials about Huawei’s potential attempt to bypass export controls for AI chips. Following reports of investigation into TSMC’s chip supplies to Huawei, the company emphasized its compliance with regulations and stated it has not supplied to Huawei since September 2020. Concerns over national security continue amid tightening controls.
### Meeting Takeaways:
1. **TSMC Alert on Huawei**:
– TSMC informed US officials about Huawei’s attempts to bypass export controls to acquire AI chips.
– A specific order resembling Huawei’s Ascend 910B processor raised concerns.
2. **Investigation Context**:
– The US Department of Commerce is investigating TSMC for potentially supplying AI or smartphone chips to Huawei, which may violate export regulations.
– TSMC denied being the subject of any investigation, stating they have proactively communicated with the US Commerce Department.
3. **US Export Control Measures**:
– The US government has imposed strict controls on advanced AI chip shipments to Chinese firms, citing national security threats related to China’s military capabilities.
– Congress is putting pressure on Japan to limit chipmaking equipment sales to China.
4. **Concerns About Huawei**:
– Huawei is viewed as a significant national security risk due to fears of espionage via its telecom equipment.
– US sanctions have severely impacted Huawei’s financial performance and have led to efforts to replace Huawei equipment by telecom providers in the US and allied countries.
5. **China’s Response to Restrictions**:
– In response to US export restrictions, China is striving for technological self-sufficiency, evidenced by a 42% increase in AI patent filings for 2023-24.
– Chinese chip designer Loongson claims it is making significant advancements with its LoongArch processors.
6. **TSMC’s Compliance Stance**:
– TSMC reiterated its commitment to complying with export controls and has not supplied Huawei since mid-September 2020.
7. **Bureau of Industry and Security (BIS) Position**:
– The BIS maintains a position of confidentiality regarding ongoing investigations but emphasizes adherence to export control regulations concerning advanced semiconductors.
### Action Items:
– Monitor developments and reports regarding TSMC, Huawei, and US export controls for any changes or updates.
– Review the implications of US-China relations on technology and semiconductor industries.