U.S. Blacklists China’s Sophgo Amid Huawei AI Chip Scandal

The U.S. government has taken a bold step against Chinese chipmaker Sophgo, now under investigation for its role in a major Huawei AI processor scandal. This action is part of a larger push by the Biden administration to crack down on companies aiding Huawei in bypassing U.S. restrictions.

Tensions are heating up between the U.S. and China, and this move isn’t going to go unnoticed.

Read on to find out more about the latest twist in this high-stakes battle.

The Huawei Connection

Sophgo, a Chinese chip designer linked to Bitcoin mining equipment supplier Bitmain, has attracted the U.S. government’s attention. A recent investigation found that a chip made by Taiwan Semiconductor Manufacturing Company (TSMC) for Sophgo ended up in Huawei’s Ascend 910B AI processor.

This processor is part of Huawei’s advanced AI systems, and the discovery has raised concerns in Washington.

U.S. Makes Its Moves

In response, the U.S. Department of Commerce is working to add Sophgo to its Entity List, which would block the company from receiving important U.S. technology and components. Although the chip was found in Huawei’s product, Sophgo has denied having any business dealings with the Chinese telecom giant, claiming no connection to Huawei.

However, U.S. officials remain skeptical, especially after the chip was discovered in Huawei’s systems.

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Sophgo’s Work with Chinese Entities

Beyond its links to Huawei, Sophgo is involved with Chinese state-owned organizations. The company supplies AI chips to local government agencies, including police stations, where they are used in surveillance technologies. This connection has raised alarms among U.S. officials, who worry these chips could be used in ways that threaten national security.

TSMC Cuts Ties with Sophgo

After the discovery, TSMC confirmed that the chip found in Huawei’s AI system matched Sophgo’s design. As a result, TSMC announced it would stop shipping to Sophgo. Although TSMC had already halted shipments to Huawei in 2020, this incident shows how companies can still find ways to acquire crucial components despite restrictions.

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A New Chapter in the US-China Tech Rivalry

The Sophgo case is just the latest development in the ongoing tech rivalry between the U.S. and China. As the U.S. works to maintain its lead in areas like AI, 5G, and semiconductors, it is using sanctions and trade restrictions to limit China’s access to advanced technology.

By targeting companies like Sophgo, the U.S. aims to slow down China’s progress in these vital fields – or so it seems.