A recent discovery by TechInsights has reignited tensions over semiconductor exports after a TSMC chip was found in Huawei's Ascend 910B processor. This follows increasing pressure from the U.S. government on Taiwan’s TSMC to restrict chip shipments to Chinese companies.

China’s Response 
China said that the US was “Playing the Taiwan Card”  to raise the tension in the Taiwan Straits. The minister further added that the US aimed to worsen the situation with Taiwan and that such a move undermines the interests of the Taiwanese companies. 

Halt on Shipments 
After the orders, TSMC halted the chip shipments to China-based designer Sophgo from Monday onwards, sources close to the matter told Reuters. It been done as one of the TSMC chips was found in Huawei’s Ascend 910B attracting the halt orders from the US as Huawei is not allowed to buy these to protect the national security concerns of the US. 

Sophgo’s Justification 
Sophgo has, in a statement on its website, denied any connection whatsoever with Huawei while it claims to stand true in letter and spirit to all the rules and regulations. 

What does Huawei Say?
Huawei, headquartered in Shenzhen, announced in a statement on Tuesday that it has not produced any chips through TSMC since the U.S. implemented new export restrictions on the company in 2020. That year, the U.S. broadened its powers to block the shipment of foreign-made goods to Huawei if they contained U.S. technology or software, including chips produced by TSMC.

Discovery of the chip in Ascend 910 B
According to Reuters, tech research firm TechInsights found a TSMC chip in Huawei's Ascend 910B after dismantling the multi-chip processor. 

Conclusion 
The ongoing tensions between the U.S. and China over semiconductor exports continue to have far-reaching implications for both global supply chains and Taiwanese companies. As the U.S. intensifies its pressure on TSMC to limit shipments to China, the broader geopolitical ramifications are becoming increasingly apparent. As both sides continue to point fingers, it remains to be seen how these moves will ultimately affect the future of the semiconductor industry, especially within Taiwan, and whether diplomatic or economic tensions will escalate further.