Taiwan Semiconductor Manufacturing Co. (TSMC) has acknowledged the limitations of its ability to prevent its artificial intelligence (AI) chips from reaching China, particularly US-sanctioned companies like Huawei Technologies Co. In its latest annual report released on Friday, the Hsinchu, Taiwan-based company stated that its role in the semiconductor supply chain inherently limits its visibility and information regarding the downstream use or user of final products that incorporate its semiconductors.
The revelation comes months after it was discovered that TSMC’s AI silicon had flowed to Huawei via intermediaries, despite US export controls. TSMC’s concerns highlight the complex challenges faced by major semiconductor manufacturers in ensuring compliance with export regulations.
TSMC’s annual report underscores the difficulties in maintaining visibility throughout the entire supply chain, particularly when it comes to the final products that incorporate their manufactured semiconductors. The company’s statement reflects the broader industry concerns about navigating complex global supply chains while adhering to export control regulations.
The issue has significant implications for the semiconductor industry and global technology trade. As major manufacturers like TSMC produce advanced chips used in AI applications, ensuring these technologies do not reach sanctioned entities becomes increasingly challenging. The situation highlights the need for more robust mechanisms to track and control the flow of sensitive technologies through complex global supply chains.
