“The U.S. strikes, Sophgo is blacklisted! The Huawei AI chip storm rises again”
The U.S. has taken action against the Chinese chip manufacturer Sophgo! Behind this move is an old acquaintance—Huawei. The Biden administration is intensifying efforts to clamp down on companies that help Huawei circumvent the bans, and Sophgo has become the latest target. What’s going on? Let’s sort it out.
The 'shadow players' behind Huawei's AI chips
Sophgo, this Chinese chip design company, has previously been involved with Bitmain. This time, things have escalated. The U.S. discovered that chips made by Taiwan's TSMC for Sophgo have appeared in Huawei's Ascend 910B AI processor. It’s important to know that this is a part of Huawei's top-tier artificial intelligence system, which directly touches a sensitive nerve for the U.S.
As a result, the U.S. Department of Commerce acted quickly and planned to place Sophgo on the 'blacklist,' which is the entity list. Being on this list means Sophgo won’t be able to obtain any U.S. technology and components, effectively cutting off their lifeline.
Sophgo cries injustice, but the U.S. is not buying it
After the news broke, Sophgo hurriedly spoke out: We have nothing to do with Huawei! But the problem is that the chip appeared in Huawei's system, which made the U.S. even more suspicious: How credible is your statement?
Worse yet, Sophgo has collaborations with several Chinese state-owned enterprises and local government agencies, and these AI chips are widely used in surveillance systems. The U.S. immediately became alert, believing that these technologies could pose a threat to national security.
TSMC also gets dragged into the fray
TSMC confirmed that the chips indeed came from Sophgo and immediately stated: We will no longer supply Sophgo! As early as 2020, TSMC had already severed business ties with Huawei, but evidently, there are many ways to obtain key chips through alternative routes.
The U.S.-China tech war is heating up
This incident is just the tip of the iceberg in the U.S.-China technological confrontation. The U.S. is fully exerting pressure on China's breakthroughs in artificial intelligence, 5G, chips, and other fields through sanctions and technological blockades. Sophgo's plight is merely a prelude; who will be the next target?
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