Huawei still using TSMC chips in AI products, despite US ban, TSMC might be in trouble

A recent investigation by the Canadian research firm TechInsights has uncovered that Huawei’s artificial intelligence accelerators still contain chips manufactured by Taiwan Semiconductor Manufacturing Company (TSMC). The discovery raises eyebrows, given the strict trade restrictions imposed by the US, which prevent Huawei from sourcing chips from foreign firms like TSMC.

According to sources familiar with the investigation, one of Huawei’s AI accelerators features an Ascend 910B chip, manufactured by TSMC. While TechInsights declined to comment, multiple reports suggest the company alerted TSMC before releasing the findings. Following this, TSMC reportedly notified the US Commerce Department about the discovery earlier this month.

The Financial Times reported that TSMC informed the Commerce Department about a suspicious order resembling Huawei’s Ascend 910B chip. TSMC claimed to have contacted both the unnamed customer and the department to address the issue.

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However, the chip giant insists it hasn’t had any business dealings with Huawei since mid-September 2020, in line with the tightened US sanctions. TSMC also emphasised that it hasn’t produced any chips for Huawei since the new restrictions were enforced. Huawei, on its part, denied ever launching the 910B chip.

The US has been actively tightening trade restrictions against Huawei in recent years. Earlier this year, it even revoked licences allowing Intel and Qualcomm to supply chips to the Chinese tech giant. The ban aims to prevent Huawei from accessing critical components that power its devices and AI systems.

This isn’t the first time Huawei has faced accusations of sidestepping sanctions. In May, Bloomberg uncovered that the company had secretly funded research at major US universities, including Harvard, by funnelling money through a foundation called Optica. After the revelations, Optica returned the funds, and its top executives resigned in August.

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These new findings suggest Huawei may still be finding ways to access restricted technology, posing challenges for regulators trying to enforce the ban. With global tensions around tech and trade running high, the situation adds another layer of complexity to Huawei’s relationship with Western markets.