No foolproof method to keep AI chips away from China, TSMC warns
The challenge for the Taiwanese tech giant is that the semiconductors TSMC customizes for many fabless firms and chip designers often end up being used in gadgets made by third parties, which is perfectly legitimate.
Taiwanese chipmaking giant TSMC has indicated that it may not be possible to ensure that its cutting-edge AI chips don’t reach China, according to a Bloomberg report.
“TSMC’s role in the semiconductor supply chain inherently limits its visibility and information available to it regarding the downstream use or user of final products that incorporate semiconductors manufactured by it,” the company said in its annual report.
US export controls require companies like TSMC to monitor shipments and know their customers to prevent China from getting access to the most advanced AI chips.
An investigation by Canadian research firm TechInsights in 2024 showed that Chinese tech giant Huawei’s Ascend 910B AI chip contained TSMC chips. Around the same time, TSMC halted shipments to a client after finding out the semiconductors it made for the customer ended up with Huawei.
The challenge for the Taiwanese tech giant is that the semiconductors TSMC customizes for many fabless firms and chip designers often end up being used in gadgets made by third parties, which is perfectly legitimate.
The Trump administration is following the Biden administration in attempts to stop China from accessing advanced AI chips. The US has blacklisted Chinese companies it believes were involved in giving Huawei access to TSMC chips.
But TSMC appears to be saying that there is no guarantee that the chips won’t reach China, no matter how careful it is.
“Despite TSMC’s best efforts to comply with all relevant export control and sanctions laws and regulations, there is no assurance that its business activities will not be found incompliant with export control laws and regulations,” TSMC said, according to Ars Technica.
