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TSMC suspended shipments to China firm after chip found on Huawei processor, sources say (www.reuters.com)

submitted 2 weeks ago by [email protected] to c/[email protected]

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Taiwan Semiconductor Manufacturing Company suspended shipments to China-based chip designer Sophgo after a chip it made was found on a Huawei AI processor, according to two people familiar with the matter.

Sophgo had ordered chips from TSMC that matched the one found on Huawei's Ascend 910B, the people said. Huawei is restricted from buying the technology to protect U.S. national security. Reuters could not determine how the chip ended up on the Huawei product.

Tech research firm TechInsights discovered the TSMC chip on Huawei's Ascend 910B when it took apart the multi-chip processor, a different source told Reuters on Tuesday. Alerted to the finding, about two weeks ago TSMC notified the U.S., the source said.

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[–] [email protected] 17 points 2 weeks ago (24 children)

How do US restrictions factor in here? TSMC is a Taiwanese company with only one operational plant in the US, the majority are in Taiwan, China, and Japan.

[–] [email protected] 21 points 2 weeks ago (1 children)

Your friend knows a secret recipe for the best chocolate chip cookies. Your mother owns the best ovens in town.

Your friend cuts a deal with your mother to use her oven exclusively. Your mother agrees knowing she’ll get to charge your friend every time they use the ovens.

This is like that. The main value is in the design (recipe). Modern foundry’s are also complex and difficult to operate affordably, but they exist all over the planet. It’s ultimately the partnerships that makes it all possible.

[–] [email protected] 1 points 2 weeks ago

Not all foundries are the same. Taiwan is leading the way for quite a long time.

There's a lot of money in both intellectual property and physical manufacturing. Trying to do an analogy with software is unfair because in software most of the costs is labor, and once the first copy is made you can make and sell as many extra copies as you want. Physical manufacturing needs machine maintenance, and expensive materials in this case.

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