Taiwanese chipmaking giant TSMC halted shipments to a customer this month after its semiconductors were sent to China's Huawei, a Taipei government official told AFP, potentially breaching US sanctions.

Taiwan Semiconductor Manufacturing Co. (TSMC) recently made a significant discovery that has caused concern for both Taiwan and the United States. TSMC Finds Its Chip in Huawei Device The company, known as the world’s largest contract chipmaker,

Taiwan Semiconductor Manufacturing Company notified the U.S. a couple of weeks ago that one of its chips had been found in a Huawei device after a teardown by the tech research firm TechInsights, according to a person familiar with the matter.

Taiwan Semiconductor Manufacturing (NYSE:TSM) said it alerted the U.S. government about a potential attempt to have it manufacture AI chips for Huawei Technologies. "We proactively communicated with the US Commerce Department regarding the matter in the report.

TSMC has advised the U.S. that there was an attempt by Huawei to violate sanctions against China restricting the export of AI chips to China, as the probe that could affect Apple chip production rolls on.

TSMC's impressive third-quarter performance in 2024 has captivated the global market, but recent rumors have drawn attention to potential challenges. Two key concerns have emerged: strained relations with Nvidia due to delays in Blackwell chip shipments,