TSMC cuts off client after its chips were sent to Huawei

TAIPEI - Taiwan Semiconductor Company Manufacturing (TSMC) discovered in October that chips it made for a specific customer ended up with Huawei Technologies, a potential violation of US sanctions intended to sever the flow of technology to a Chinese national champion.

TSMC halted shipments to the client around mid-October after it realised semiconductors fabricated for that entity had found their way into Huawei products, a person with knowledge of the matter said. The chipmaker has since notified the US and Taiwanese governments and is investigating the matter more thoroughly, the person said.

It is unclear whether the TSMC client was acting on Huawei's behalf, or where it is based. But the incident sheds new light on reports that surfaced in past days, including from The Information, that Washington reached out to TSMC recently about whether the company had produced chips for the blacklisted Chinese company.