Chinese chip manufacturer Xiamen Sophgo, associated with Bitmain, has officially denied any business relationship with Huawei following Taiwan Semiconductor Manufacturing Company (TSMC)'s decision to cease dealings with it amid a United States investigation into potential sanctions violations. Reports indicated that Sophgo ordered chips from TSMC that resembled those used in Huawei’s Ascend 910B. The investigation by the U.S. Department of Commerce seeks to determine if TSMC knowingly supplied chips to Huawei, which has faced U.S. sanctions since 2020 due to national security concerns. Sophgo asserted that it does not engage directly or indirectly with Huawei and emphasized its compliance with laws and regulations. The U.S. Commerce Department, alongside TSMC, noted similarities between chips made for Sophgo and Huawei’s AI chips. Sophgo, established in 2019 by Micree Zhan, has maintained operational ties with Bitmain despite past conflicts over strategic direction. The company aims to evolve beyond cryptocurrency chip production into the AI sector, a move that has been contentious within Bitmain's leadership.

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