TSMC (TSM) is confronting challenges in adhering to strict export regulations following reports of its technology's incorporation into Huawei's Ascend 910B. The company stated that its position within the semiconductor supply chain restricts its ability to fully monitor and control the end-use of its products.
The situation arose amid heightened U.S. restrictions on the export of advanced AI chips to China. These regulations aim to prevent such technology from reaching entities deemed to be under sanctions. Despite TSMC's commitment to cooperation with regulatory authorities, it acknowledges the inherent difficulty in preventing its semiconductors from being diverted to unintended applications.
This issue reflects a broader industry challenge, as semiconductor manufacturers often lack comprehensive visibility over the final use or users of products that incorporate their components. TSMC's predicament underscores the complexities faced by technology companies in navigating international trade regulations while sustaining their business operations globally.