TSMC ends relation with Singapore’s PowerAIR over Huawei chip dispute

TSMC has reportedly marked a full stop on its relationship with PowerAIR over the Huawei chip conflict. The Taiwanese chipmaker took this decision following a client review. It’s a new turn in the TSMC and Chinese tech giant chipset war.

Huawei was found using a TSMC-made chip in its AI processor months ago. Since then, US has been looking for the culprit who delivered the chip to the Chinese firm.

Last month, TSMC cut ties with China’s Sophgo. As per reports, the chipset producer believed Sophgo had been supplying TSMC processors to Huawei.

• Know More: US banned Sophogo following Huawei-TSMC chip war

Now TSMC has allegedly cut bonds with Singapore’s PowerAIR due to the Huawei chip dispute. Three sources revealed that after a client review, the Twainese chipmaker has restricted chip supply for the low-profile Singapore company.

PowerAIR is a Singaporean private company. It focuses on operational and engineering design. The firm also looks after consultancy and principal activities.

Details reveal that a client found PowerAIR potentially breaching US export controls. Other inputs on this matter are currently unknown. But similar to Sophgo, PowerAIR suspected to have a major involvement in the Huawei and TSMC chip case.

TSMC is constantly looking for loopholes that eventually help Huawei in the chipset field. The Taiwanese chipmaker also increased the investigation on its Chinese clients. As a result, the scrutiny is affecting many AI chip design start-ups in China.

A source said that startups like Enflame, MetaX, and Iluvatar Corex are facing problems following TSMC’s investigation. TSMC is making these moves due to the US instructions.

China is still one of the biggest sources of revenue for TSMC after the US. Hence, the chipmaker may not completely suspend chip supplies to the country. However, the current situation may persist until the exact theory behind the discovery of TSMC-made chips in Huawei AI products is found.

TSMC ends relation with Singapore’s PowerAIR over Huawei chip dispute (Image Credits: TSMC)

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