Reports from foreign media indicate that TSMC has discovered a customer redirecting chips to Huawei, leading to a suspension of shipments to this client.
According to the research firm TechInsights, Huawei's processors use TSMC's 7nm process technology. TSMC promptly emphasized that they had ceased shipments to Huawei since mid-September 2020 and has actively communicated with the U.S. Department of Commerce about this matter. Subsequently, reports emerged that TSMC stopped shipments to a certain customer in mid-October after discovering they were redirecting chips to Huawei.
Taiwan Industry Economics Services Director Liu Pei-chen (劉佩真) points out that Huawei's use of TSMC's 7nm process reflects China's ongoing struggles with advanced semiconductor production under US foreign direct product rule restrictions. Achieving 5nm technology using multiple exposure techniques with lower-grade equipment has proven challenging, and progressing to 3nm technology remains even more difficult.
TSMC is showing strong growth, projected to increase by 30% this year, which means the company does not need to rely on Chinese customers. However, as China faces continuous restrictions on advanced process development, illegal procurement likely will persist. This situation underscores the need for TSMC to strengthen its internal controls.