Huawei Acquires AI Chip Semiconductors from Taiwan’s TSMC Through a Paper Company
Huawei, China’s largest telecommunications equipment company, has reportedly circumvented U.S. sanctions to secure over 2 million AI semiconductors from Taiwan’s TSMC. This maneuver, detailed in a report by the U.S. think tank Center for Strategic and International Studies (CSIS) released on March 7, highlights the intricate dynamics of international trade and technology transfer amidst stringent U.S. sanctions.
The report reveals that Huawei utilized a paper company to facilitate the supply of over 2 million Ascend 910B logic dies from TSMC to China. This quantity is sufficient for Huawei to produce up to 1 million Ascend 910C chips, an upgraded version of the Ascend 910B chip introduced in 2023 as a competitor to NVIDIA. The Ascend 910C chip, adopting a 7nm process, is manufactured by combining two Ascend 910B chips with high-bandwidth memory, representing a significant advancement in AI semiconductor technology and underscoring Huawei’s strategic efforts to bolster its semiconductor capabilities.
The U.S. has imposed various restrictions on Huawei since 2020, citing national security concerns and allegations of espionage. These sanctions have aimed to limit Huawei’s access to critical technology, particularly advanced semiconductors. The measures intensified in October 2022 and October 2023, further restricting Chinese access to advanced node AI semiconductor designs.
Taiwanese authorities confirmed the supply chain breach, stating,
Taiwan’s TSMC supplied over 2 million Ascend 910B logic dies to China through a Huawei paper company.
An anonymous Taiwanese official admitted to the New York Times, highlighting the challenges in enforcing export controls.
The chips manufactured by TSMC ultimately ended up in Huawei’s hands,
In addition to securing semiconductors, Huawei has reportedly stockpiled more than a year’s supply of high-bandwidth memory (HBM), essential for manufacturing the Ascend 910C. The report indicates that Huawei imported this supply from Samsung Electronics between August and December, a period when plans to control the influx of advanced HBM into China were being implemented.
The report warns of potential future strategies by Huawei, suggesting that the company may attempt similar approaches with other chip foundry companies like Samsung and Intel. It also cautions that any reduction in U.S. government resources or personnel, or a lack of cooperation from allies, could exacerbate the situation.
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Huawei Acquires AI Chip Semiconductors from Taiwan’s TSMC Through a Paper Company, source
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