50
Huawei's Ascend 910C AI chip is the next "DeepSeek" moment for China, and despite US restrictions, the firm seems to be still fulfilling its chip needs from TSMC.
TSMC's Chips Are Still Being Used By Huawei Through Third-Party Sources, Raising Doubts on US Trade Policies
[Update]: A TSMC spokesperson approached us, refuting the claims of TSMC sourcing chips from Huawei. Here's what the statement said:
TSMC is a law-abiding company and we are committed to complying with all applicable rules and regulations, including applicable export controls. In compliance with regulatory requirements, TSMC has not supplied to Huawei since mid-September 2020. We maintain a robust and comprehensive export system for monitoring and ensuring compliance.
If we have any reason to believe there are potential issues, we will take prompt action to ensure compliance, including conducting investigations and proactively communicating with relevant parties, including the US Department of Commerce.
- TSMC
Well, it seems like Huawei has a priority of nailing the release of its next-gen Ascend AI chip, which is said to narrow down the competition between China and the US AI hardware capabilities. In an insight by SemiAnalysis, it is claimed that Huawei has sourced chips from TSMC in massive volumes, even after the recent US ban, which shows that neither of the parties is concerned about violating trade policies set by the Trump administration.
One common misconception is that Huawei’s 910C is made in China. It is entirely designed there, but China still relies heavily on foreign production. Whether it be HBM from Samsung, wafers from TSMC, or equipment from America, Netherlands, and Japan, there is a big reliance on foreign industry.
- SemiAnalysis
It is claimed that Huawei's Ascend 910C will utilize TSMC's 7nm process as the main node for its die, and according to TechInsights, it is claimed that most of the AI chips will utilize foreign semiconductors. Interestingly, China's own foundry, the SMIC, also offers the 7nm process, but it seems like Huawei doesn't want to bet on a rather "immature" process. It is estimated that Huawei acquired around $500 million worth of TSMC's 7nm chips through the Chinese firm Sophgo, which the Taiwan giant previously banned.
Interestingly, TSMC was previously fined $1 billion when its chips were found in Huawei's Ascend 910B AI processors, and the Taiwan giant ultimately halted all orders with Chinese firms. It seems like despite this, Huawei has managed to acquire TSMC's chips by likely stockpiling them back when the export controls weren't imposed. SemiAnalysis claims that Huawei still has access to TSMC's chips via a third-party company, but they cannot verify the claim.
Imposing restrictions on China hasn't worked out too well for the US since major domestic tech companies have managed to access cutting-edge AI hardware, either by utilizing loopholes or by obtaining it from black markets.
