TSMC Halts Shipments After Chips Found in Huawei Products Amid US Sanctions

Taiwanese chipmaker TSMC has stopped deliveries to a client after discovering its semiconductors were in Huawei devices, potentially violating US export controls.

• TSMC discovered on October 11 that chips intended for a specific customer ended up with Huawei, leading to a halt in shipments.
• The US has imposed sanctions on Huawei since 2019, aiming to restrict its access to advanced technologies over national security concerns.
• TSMC has informed both US and Taiwanese authorities about the incident, asserting compliance with export regulations since mid-September 2020.
• The situation raises questions about Huawei's potential 'shadow network' for acquiring restricted chips, prompting calls for increased supply chain scrutiny.
• Analysts warn that if TSMC is found in violation, it could face penalties impacting its operations and affecting major clients like Apple and Nvidia.

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