TSMC Cuts Ties with Singapore Firm Amid Huawei Chip Controversy

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Taiwan Semiconductor Manufacturing Company (TSMC) has terminated its relationship with PowerAIR, a Singapore-based firm, following a review that revealed potential violations of U.S. export controls. This decision comes in the wake of a TSMC chip being discovered in a processor developed by Huawei Technologies, which has been under a U.S. ban since 2020, limiting its access to global semiconductor resources.

The revelation of the chip's presence in Huawei's artificial intelligence processor triggered increased scrutiny from TSMC, which had previously announced that it had not sold products to Huawei since the enforcement of U.S. sanctions. PowerAIR, incorporated in September 2023, specializes in engineering design and consultancy but has no publicly available contact information.

In a comparable situation, TSMC halted shipments to the Chinese chip design company Sophgo last year after a related incident involving a chip sent to Huawei. The tightening of client evaluations by TSMC aims to prevent further entanglement with companies associated with Huawei, a significant player in China's technology sector. Currently, TSMC continues to rely on mainland China as a major revenue source, despite the ongoing geopolitical tensions.

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