TSMC, the global leader in contract semiconductor manufacturing, stated that they cannot guarantee with complete certainty that their chips will not end up in China. This acknowledgment was made in their most recent annual filing where they outlined difficulties in maintaining oversight over client adherence to regulations. This statement comes several months following reports that intermediaries had shipped TSMC’s AI processors to Chinese tech giant Huawei.
TSMC states that the difficulties within the chip supply chain restrict their capacity to guarantee the chips do not end up in 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 position within the semiconductor supply chain naturally restricts its access to details about how downstream users will utilize or interact with finished goods containing semiconductors produced by them,” stated the firm in its yearly filing.
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.
Nevertheless, the debacle highlighted numerous gaps and difficulties present in the semiconductor supply chain.
The Trump administration has increased limitations on China’s ability to obtain cutting-edge technologies.
If you haven’t noticed, the U.S. government continues to restrict China’s access to cutting-edge technologies. The Trump administration is carrying forward with policies similar to those initiated under former President Joe Biden aimed at controlling the distribution of sophisticated technology to Chinese firms due to national security worries.
Last month, the U.S. implemented fresh rules aimed at AI-specific chips. Additionally, authorities urged manufacturers such as TSMC and Samsung to enhance their verification processes and thoroughness when dealing with customers, particularly those from China. The officials also imposed restrictions on 16 Chinese firms, among them SOPHGRO Technologies, reportedly involved in assisting Huawei obtain semiconductors from TSMC previously.
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.
The post
TSMC states it cannot stop AI chip technology from reaching China.
appeared first on
Android Headlines
.
