TSMC has halted production shipments to Sophgo, a Chinese company believed to be acting as a proxy for Huawei in producing the Ascend 910B chip.

Despite Sophgo's claims of adhering to all legal requirements and maintaining no direct business ties with Huawei, the discovery that Sophgo's chip orders closely resemble the Ascend 910B, originally developed by TSMC, led to TSMC's decision to halt shipments.

Huawei's strategy of leveraging Western-designed technologies while attempting to avoid direct supplier conflicts is under scrutiny. The company often employs indirect purchasing of chips or wafers, using third parties to secure necessary components, and then obscuring these connections.

While the U.S. Department of Commerce acknowledged the breach of export restrictions, it did not comment on any ongoing investigation. Sophgo's supply chain connections have attracted attention due to potential export control violations.