TSMC has terminated its partnership with Singapore's PowerAIR amid a probe into possible US export control violations, potentially involving Huawei. This move highlights the challenges of enforcing US sanctions on Huawei, the vulnerabilities in the semiconductor supply chain, and TSMC's commitment to US regulations despite China's substantial role in its revenue.
According to the South China Morning Post, Tom's Hardware, and Huawei Central, TSMC terminated its collaboration with Singapore-based PowerAIR after an internal investigation raised concerns over potential violations of US export control regulations. While TSMC did not confirm the ultimate customer, reports suggest that the involvement may be linked to Huawei, which is under US sanctions.
Huawei, unable to legally procure chips using US technology since 2020, is suspected of using intermediaries to bypass the ban. A teardown of Huawei's Ascend 910B AI processor revealed a TSMC-manufactured chip module, which led to the investigation.
After confirming the findings, TSMC halted shipments to Sophgo, reported the issue to authorities, and launched an investigation into PowerAIR. The investigation uncovered that PowerAIR lacked engineering resources and partnerships with established chip design companies, raising suspicions about its connections to Huawei. PowerAIR, registered in 2023 as a private consulting firm, has little publicly available corporate information.
This marks the second instance of an unknown entity providing advanced technology to Huawei, highlighting the complexities of US export controls and their effect on the semiconductor supply chain. TSMC's cautious approach aligns with US directives and reflects its ongoing scrutiny of Chinese-related customers. Despite the investigation, it is unlikely that TSMC will entirely stop chip supplies from being sent to China, as the country remains a major revenue source.