US ‘Adding Sophgo’ To Blacklist Over Link To Huawei AI Chip

US Commerce Department reportedly adding China’s Sophgo to trade blacklist after TSMC-manufactured part found in Huawei AI processor

The US Commerce Department is in the process of adding Chinese chip company Sophgo to a trade blacklist, after a chip the company ordered from Taiwan’s TSMC was found in a Huawei Technologies AI processor, Reuters reported.

Sophgo, an affiliate of Bitcoin mining equipment maker Bitmain, is being added to the Entity List, which bars US companies from supplying it without a licence, the report said.

In October TSMC said it had stopped supplying Sophgo after Canadian research firm TechInsights said it found a TSMC-manufactured chip inside Huawei’s 910B AI chip.

Huawei has been on the trade blacklist, called the Entity List, since 2019.

Sophgo ban

Since 2020 the company has been subject to other US sanctions that bar foreign firms using US technology to supply Huawei.

Sophgo said in October it “has never been engaged in any direct or indirect business relationship with Huawei”.

TSMC said in October it has not supplied Huawei since 2020.

Beginning on 11 November the US ordered TSMC to stop shipments to China of 7 nanometre or more advanced chips that could be used in AI applications.

The Ascend 910B is currently Huawei’s most powerful AI chip, and the company is marketing it to domestic Chinese customers that have been blocked from acquiring Nvidia accelerator chips due to US restrictions.

Huawei claimed in June that the 910B has more or less equivalent performance to Nvidia’s top-of-the-line AI accelerators.

Chip restrictions

The US is trying to stop China from developing advanced chips that could be used for AI or other purposes, saying this threatens its national security.

Huawei said it “has not produced any chips via TSMC since the US Department of Commerce implemented its amended foreign direct product rule that targeted Huawei in 2020”.

The US Commerce Department this month introduced a fresh round of trade restrictions, including adding 140 more Chinese chip-related companies to the Entity List.