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TSMC, the world’s largest contract chipmaker, said it can’t possibly fully ensure that its chips don’t reach China. In its latest annual report, the company has listed the challenges of ensuring control compliance by its clients. Months after intermediaries delivered TSMC’s artificial intelligence (AI) chip to China’s Huawei, this announcement has arrived.
TSMC says challenges of the chip supply chain limit its ability to ensure they don’t reach China
The Taiwanese tech giant claims that it doesn’t have full control over end-users of its silicon. This clearly indicates that we can see more of the company’s chips falling into the hands of companies in China. It claims the firm has “limits” of fully knowing about the clients to whom it exports its chips. This suggests that a Huawei-like incident can surface in the future.
“TSMC’s role in the semiconductor supply chain inherently limits its visibility and information available to it regarding the downstream use or the user of final products that incorporate semiconductors manufactured by it,” said the company in its annual report.
For those who may not know, media attention focused on TSMC when reports revealed that its chips ended up in Huawei’s AI products. At that time, the chip maker stated that it exported these chips to Huawei before the US sanctions took effect.
However, the fiasco indicated that there are many loopholes and challenges within the semiconductor supply chain.
The Trump administration has tightened restrictions on China’s access to advanced technologies
If you are unaware, the US government is continuing to limit China’s access to advanced technologies. The Trump administration is following the footsteps of former President Joe Biden in curbing the flow of advanced tech to Chinese companies out of national security concerns.
Just last month, the US introduced new regulations targeting artificial intelligence chips. Furthermore, the administration called for chip makers like TSMC and Samsung to step up their scrutiny and due diligence of consumers, especially those in China. Officials also banned 16 Chinese companies, including SOPHGO Technologies, which allegedly played a role in helping Huawei acquire TSMC’s semiconductor last year.
It’s worth mentioning that Trump believes that TSMC is a trustworthy company and has no choice but to invest $100 billion in the US.
This article first appeared on Android Headlines
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