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Exclusive-US plans to blacklist company that ordered TSMC chip found in Huawei processor -- source

Published by Global Banking & Finance Review

Posted on December 20, 2024

1 min read

· Last updated: January 27, 2026

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Illustration of US blacklisting Chinese company for TSMC chip in Huawei processor - Global Banking & Finance Review
This image represents the US government's plan to blacklist a Chinese company, Sophgo, linked to TSMC chips found in Huawei processors, highlighting national security concerns.
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By Alexandra Alper and Karen Freifeld (Reuters) - The Biden administration plans to blacklist a Chinese company whose TSMC-made chip was illegally incorporated into a Huawei AI processor, according to

US to Blacklist Chinese Firm Over Huawei Chip Use

By Alexandra Alper and Karen Freifeld

(Reuters) - The Biden administration plans to blacklist a Chinese company whose TSMC-made chip was illegally incorporated into a Huawei AI processor, according to a person familiar with the matter.

Chip designer Sophgo, an affiliate of bitcoin mining equipment supplier Bitmain, is in the process of being placed on the U.S. Commerce Department's Entity List, the person said.

A spokesperson for the Commerce Department declined comment.

Sophgo drew attention after ordering a chip from Taiwan Semiconductor Manufacturing Corp. (TSMC) that matched one found on Huawei's Ascend 910B.

Companies are added to the Entity List for activities contrary to U.S. national security and foreign policy interests. Exporters are then barred from shipping goods and technology to them without a license, which is likely to be denied.

China's Huawei, a telecommunications equipment maker and technology conglomerate, was placed on the list in 2019. Since 2020, it has been a violation to ship even foreign-made chips to the company without a license.

(Reporting by Karen Freifeld and Alexandra Alper; Editing by Chizu Nomiyama)

Key Takeaways

  • The US plans to blacklist a Chinese company linked to Huawei.
  • Sophgo ordered a TSMC chip found in Huawei's processor.
  • The company will be added to the US Commerce Department's Entity List.
  • Exporters need a license to ship technology to listed companies.
  • Huawei has been on the Entity List since 2019.

Frequently Asked Questions

What is the main topic?
The US plans to blacklist a Chinese company for using a TSMC chip in a Huawei processor, citing national security concerns.
Why is Sophgo being blacklisted?
Sophgo is being blacklisted for ordering a TSMC chip found in Huawei's AI processor, which violates US policies.
What is the Entity List?
The Entity List is a trade restriction list by the US Commerce Department for companies acting against US national security.

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