An intriguing investigation has uncovered that Huawei Technologies Co.’s latest artificial intelligence (AI) chips were produced by Taiwan Semiconductor Manufacturing Co. (TSMC), a partner of Nvidia Corp. This revelation raises questions about China’s ability to produce advanced chips independently, especially in light of ongoing US sanctions.
According to Canada-based research firm TechInsights, a teardown of one of Huawei’s high-end AI accelerators revealed the presence of an Ascend 910B chip made by TSMC. Sources familiar with the investigation, who requested anonymity, confirmed the findings from this not-yet-public report.
Since August 2020, Huawei has been on a US sanctions list, prohibiting it from conducting business with TSMC and other contract chipmakers without a government license. Over the past year, the company has primarily relied on Semiconductor Manufacturing International Corp. (SMIC) for production, including the launch of a 7-nanometer chip in a Huawei smartphone last August. However, US officials have raised doubts about SMIC’s capability to produce 7-nm chips at scale, suggesting that Huawei’s reliance on TSMC for its latest AI chips reinforces this skepticism.
It remains uncertain how Huawei acquired the TSMC chips, especially since TSMC has claimed it ceased all shipments to Huawei after September 15, 2020. TSMC stated, “We are committed to complying with all applicable rules and regulations, including export controls.” The company further emphasized it has not supplied chips to Huawei since mid-September 2020.
In response to the allegations, Huawei denied producing any chips through TSMC since the US imposed restrictions, asserting that it has “never launched the 910B chip.” TechInsights declined to comment on the matter, while a spokesperson for the US Commerce Department acknowledged awareness of reports alleging potential violations of export controls but refrained from confirming an ongoing investigation.
Discussions between the Bureau of Industry and Security (BIS) and TSMC executives recently focused on the chipmaker’s supply chain and the potential for third-party distributors to provide China access to restricted technology. However, this meeting did not address the findings from TechInsights.
Huawei’s 910 accelerator, a precursor to the 910B, began production in 2019 before the US expanded its sanctions against the telecom giant. The company managed to stockpile TSMC chips around that time, which enabled it to use a TSMC 5-nanometer chip in a laptop released late last year.
AI accelerators, crucial for developing advanced artificial intelligence models, have become highly sought after in the tech industry. Nvidia, based in Santa Clara, California, relies on TSMC to manufacture its leading chips and has seen a significant increase in sales and valuation over the past two years. Meanwhile, the US has restricted exports of cutting-edge Nvidia chips to China, prompting Huawei to offer its AI accelerators as a domestic alternative.
The exact timeline of Huawei’s design or order placement for the 910B chip prior to the sanctions remains unclear. The chip first appeared in server products as early as 2022, and while it garnered attention in Chinese media throughout 2023, Huawei has not officially launched it. However, companies like Iflytek Co. and Baidu Inc. have reportedly ordered substantial quantities of the 910B units, indicating a growing interest in Huawei’s AI capabilities.
As the story unfolds, the implications of Huawei’s chip sourcing will undoubtedly have significant ramifications for the future of technology in China and beyond.
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