Taiwan Semiconductor Manufacturing Company (TSMC) has halted chip shipments to a client after discovering its components were found in a Huawei product. This action came about two weeks ago, triggering a detailed investigation to assess the situation’s full scope. A Taiwanese trade official, speaking anonymously, confirmed the development due to its sensitive nature.
The incident has raised alarms due to potential violations of US export controls. TSMC notified both US and Taiwanese authorities, categorising the discovery as a significant internal warning. While the client involved remains undisclosed, TSMC is cooperating with officials but has refrained from commenting further.
The controversy follows a report by TechInsights, which disassembled a Huawei device and found TSMC chips. Such findings suggest the chips may have bypassed US restrictions designed to limit China’s access to advanced technology, particularly to curb military advancements. Taiwan, mindful of growing regional tensions, enforces strict export rules in alignment with the US.
Huawei has long been a focal point of US efforts to control the flow of advanced technology to Chinese entities. Despite these restrictions, Chinese companies have sought workarounds, including using cloud platforms like Amazon’s to gain access to advanced US chips. Taiwan continues to monitor such risks closely, aiming to uphold compliance with international export regulations.
The outcome of the US presidential election will not change the course of the tech conflict with China. Both Republican Donald Trump and Vice President Kamala Harris are expected to intensify measures aimed at limiting China’s access to American technology and resources, although their strategies will differ.
Harris is likely to adopt a focused, multilateral approach, building on Biden’s tactics by working with allies to curb the flow of advanced technology to China. In contrast, Trump’s strategy could include sweeping measures, such as expanding tariffs and aggressively enforcing export controls, possibly escalating tensions with allies who resist the US lead.
Both candidates aim to curb China’s technological advancement and its military capabilities. Harris has pledged to ensure the US remains at the forefront of the global technology race, while Trump continues to advocate for higher tariffs and tough restrictions, including denying China access to essential components like AI chips.
China has already responded to recent US actions by imposing restrictions on exports of critical materials, such as graphite and rare earths. Experts warn that the US should exercise caution, as some industries remain reliant on Chinese resources. The tech war will likely see new fronts, including connected devices, as the conflict deepens under the next administration.
Intel has won a significant victory in a legal battle that spanned nearly two decades, as the European Union’s Court of Justice ruled in its favour on Thursday. The court dismissed an appeal by the European Commission, which had accused the US chipmaker of anti-competitive practices aimed at undermining rival Advanced Micro Devices (AMD).
The dispute centred on Intel offering rebates to major computer manufacturers, such as Dell, Hewlett-Packard, NEC, and Lenovo, for primarily using Intel chips. EU regulators had fined Intel €1.06 billion, arguing the rebates were intended to block AMD’s market share. However, Intel consistently challenged the fine, asserting that regulators failed to prove any anti-competitive impact from the rebates.
Earlier this year, Intel’s case gained momentum when a legal adviser indicated that EU regulators had not sufficiently conducted an economic analysis to support their claims. This led to the court’s final decision to overturn the fine, bringing the lengthy legal struggle to a close.
Arm Holdings is cancelling a key architectural license agreement with Qualcomm, escalating the legal dispute between the two companies. According to a Bloomberg News report, Arm has given Qualcomm a 60-day notice to terminate the agreement, which allows Qualcomm to design chips using Arm’s intellectual property. The two tech giants have been embroiled in a legal battle since 2022 when Arm sued Qualcomm for not renegotiating the license after its acquisition of chip startup Nuvia.
Qualcomm criticised Arm’s decision, calling it a ‘desperate ploy’ to disrupt the upcoming trial, which is set to begin in December. Qualcomm claims its rights under the agreement will be upheld and accuses Arm of anti-competitive behaviour. The dispute could impact shipments of laptops using Qualcomm’s chips, including Microsoft’s Copilot+ devices, and potentially reverse Qualcomm’s acquisition of Nuvia.
Despite the tensions, some analysts expect the companies to reach a settlement before the trial. A legal victory for Arm could have significant consequences for Qualcomm and its partners.
Taiwan Semiconductor Manufacturing Company (TSMC) has notified the US government about a potential breach of export controls involving Huawei. TSMC suspects that the Chinese tech company may be attempting to work around US restrictions that ban the chipmaker from producing advanced AI chips for Huawei, a target of American trade curbs since 2020.
The US imposed these controls to limit China’s access to high-end semiconductors, crucial for developing military technologies. While TSMC claims it hasn’t supplied Huawei since mid-2020, a recent customer order for a chip similar to Huawei’s Ascend 910B has raised concerns. The AI chip in question is designed for training large language models, a key area of competition in the tech rivalry between Washington and Beijing.
TSMC promptly reported the situation to the US Commerce Department, although no investigation has been launched against the company. The US and Huawei have yet to comment on the matter.
Thailand’s Commerce Minister, Pichai Naripthaphan, has revealed that Nvidia, the US-based chip-making giant, is preparing to announce significant investment plans in Thailand. This unveiling is expected to occur during Nvidia CEO Jensen Huang’s scheduled visit to Bangkok in December. While Minister Pichai did not disclose the exact details of the investment or the financial scale, the move marks a notable step in Nvidia’s expansion efforts in the Southeast Asian region.
Nvidia’s decision to invest in Thailand reflects the country’s growing importance as a hub for technology and innovation in the region. The potential investment could also strengthen Thailand’s position in the global semiconductor industry, as demand for advanced chips continues to surge, particularly in sectors like AI, gaming, and data centres. The Thai government will likely welcome this development, which aligns with its broader goals to attract more high-tech investments and drive economic growth through technological advancements.
This upcoming announcement highlights the deepening relationship between global tech giants and Southeast Asia, with Thailand emerging as a key player in attracting multinational companies like Nvidia. More details are expected to be revealed during Huang’s visit, potentially signaling a significant economic boost for the region.
Marvell Technology, a leading US chip manufacturer, has announced it will raise prices across its entire product line starting January 1, marking the first major price increase in the optical communications sector. This decision comes after Marvell’s strong financial performance last quarter, driven by the surging demand for AI-related products, including ASICs and silicon photonics for data centres. The price hike is seen as a way to capture new market opportunities and support ongoing investments in innovative technologies.
A leaked notification letter from Marvell’s Senior Vice President of Global Sales, Dean Jarnac, revealed that the global demand for AI and accelerated computing is pushing companies like Marvell to expand production capacity and invest in new manufacturing bases. Jarnac emphasised that the price increase is necessary to support these investments, but assured customers that the impact would be minimised and encouraged them to plan their orders accordingly.
Marvell’s recent growth has been fueled by booming demand in the AI space, particularly in its data centre business. Key products such as 800G PAM and 400ZR optical solutions have been central to this success. Marvell’s CEO Matt Murphy highlighted the company’s optimistic outlook, expecting continued revenue growth in the coming quarter as demand for AI and data centre solutions continues to rise.
The US Commerce Department has announced plans to award $325 million to Hemlock Semiconductor to expand its production of semiconductor-grade polysilicon. The funding is part of a larger effort to shift and strengthen the United States chip supply chain.
The grant, from the $52.7 billion semiconductor manufacturing and research subsidy programme, will support the construction of a new facility in Hemlock, Michigan. Commerce Secretary Gina Raimondo stressed the importance of a reliable source of polysilicon for manufacturing semiconductors, which are critical to the nation’s economic and national security.
Hemlock Semiconductor, a joint venture of Corning Inc and Shin-Etsu Handotai, is making a significant investment in advanced technologies to maintain its position as a leading supplier to the semiconductor market. The expansion aligns with the Biden administration’s broader plan to boost domestic chip production through grants to major companies.
The administration has already announced preliminary awards totalling $36 billion from the $39 billion set aside for manufacturing subsidies. While only one grant has been finalised, officials expect more deals to be concluded by the end of the year.
Qualcomm is integrating advanced AI technology from its laptop processors into mobile phone chips. The new Snapdragon 8 Elite chip introduces improved capabilities for generative AI, such as producing images and text.
The chip incorporates Qualcomm’s Oryon custom computing technology, originally developed by engineers who joined the company from Apple in 2021. This innovation aligns with the company’s broader effort to push AI features across various platforms.
Developers will benefit from enhanced tools that complement existing Android functionalities, allowing deeper use of the Snapdragon chip’s AI capabilities. Qualcomm aims to distinguish its approach from Google’s rapid developments in AI by offering unique technologies to app creators.
Major companies, including Samsung, Xiaomi, and Asustek, are set to integrate Qualcomm’s latest chips into their devices. This marks another step in the company’s strategy to remain a leader in mobile computing and AI solutions.
The US government is nearly finalising rules restricting American investments in certain advanced technologies in China, particularly AI, semiconductors, microelectronics, and quantum computing. These regulations are designed to prevent US know-how from contributing to China’s military capabilities following an executive order signed by President Joe Biden in August 2023. The rules are under review by the Office of Management and Budget and are expected to be released soon, possibly before the upcoming US presidential election on 5 November.
The new regulations will require US investors to notify the Treasury Department about specific investments in sensitive technologies. While the rules will ban certain investments outright, they also include several exceptions. For example, some publicly traded securities and certain types of debt financing will not fall under the restrictions. However, US companies and individuals will determine which transactions are subject to the new limits.
Earlier drafts of the rules, published in June, gave the public a chance to provide feedback and proposed banning AI investments that involved systems trained with substantial computing power. The final regulations are expected to provide additional clarity, particularly concerning the thresholds for restricted transactions in AI and the role of limited partners in such investments.
Experts like Laura Black, a former Treasury official, anticipate that the regulations will take effect at least 30 days after release. These measures reflect the US government’s growing focus on curbing China’s access to critical technologies while balancing the need for certain economic exceptions in mutual funds and syndicated debt financing sectors.
The upcoming release will be a significant step in the Biden administration’s broader effort to safeguard US technological advantage and national security interests in the face of growing competition from China.
