The US government has added Sophgo, a Chinese tech company, to the Department of Commerce’s Entity List for acting as an intermediary between blacklisted Huawei and TSMC in chip supplies. This move means Sophgo will no longer be able to procure advanced chips, effectively ending its operations.
Sophgo had violated US export rules by placing orders with TSMC for chips made using American technologies, which is against the law. The company’s actions are believed to have been an attempt to skirt around US chip sanctions on Huawei. As a result, Sophgo will face strict export restrictions, requiring a license for shipments that are usually denied.
Sophgo is affiliated with Bitmain, a Chinese Bitcoin mining equipment supplier, and has reportedly supplied AI processors to Chinese government entities. The company’s connection to Huawei through an intermediary arrangement was uncovered during a teardown of Huawei’s Ascend 910 processor by research firm TechInsights.
This move against Sophgo appears to be part of the US efforts to cut off Huawei from accessing advanced chip technology. It is unclear how many other intermediaries Huawei might use to acquire these products, but it highlights the complexity of the issue and the need for companies to carefully navigate global trade regulations.
Source: https://www.tomshardware.com/tech-industry/artificial-intelligence/us-govt-set-to-ban-huawei-intermediary-sophgo-over-ai-chip-supplies-partnership-skirted-us-chip-sanctions