US to ban this Chinese technology company for 'helping' Huawei

The US government is reportedly preparing to blacklist Chinese company Sophgo . According to an exclusive report in Reuters, US is set to ban Sophgo after a TSMC-made chip ordered by Sophgo was found inside a Huawei artificial intelligence processor, the Ascend 910B . This discovery suggests Sophgo illegally supplied the chip to Huawei.

The chip was identified by TechInsights during a teardown of the Ascend 910B. They alerted TSMC , who then notified US authorities. TSMC subsequently suspended shipments to Sophgo after confirming the chip matched Sophgo's design.

Sophgo, affiliated with bitcoin mining equipment supplier Bitmain , will be added to the Entity List, restricting U.S. exports to the company. This action follows the Commerce Department's recent addition of other companies linked to Huawei's network to the restricted trade list.

Despite Sophgo's October statement denying any business relationship with Huawei, evidence suggests otherwise. Reuters' review of tenders revealed Sophgo as a supplier to Chinese local governments and state-owned firms, including China Telecom. Further, tenders showed that over the past two years, Sophgo and Bitmain AI chips were purchased by Chinese state-run universities and police stations.

The connection between Sophgo and Bitmain is further strengthened by co-founder Micree Zhan's involvement in both companies. Zhan indirectly owns a significant portion of Sophgo through an investment vehicle. Sophgo even used a Bitmain email address in communications with the U.S. Federal Communications Commission in 2023. While Bitmain has denied involvement in the supply chain investigation, these connections raise questions.

This incident highlights Huawei's continued pursuit of advanced AI chip technology despite U.S. restrictions. The Ascend 910B is considered the most advanced AI chip from a Chinese company, and Huawei plans to begin mass production of its successor, the Ascend 910C, in early 2025.

TSMC has stated it has not supplied Huawei since 2020 and confirmed it alerted both Taiwanese and U.S. authorities about the discovered chip, launching a detailed investigation. A recent U.S. order also restricts TSMC from shipping advanced chips (7-nanometer or more advanced) to China if they could be used for AI applications.