U.S. Blacklists China’s Sophgo Amid Huawei AI Chip Scandal
The U.S. government takes bold steps to combat Chinese chipmaker Sophgois currently under investigation for his role in a major scandal involving Huawei’s artificial intelligence processors. The action is part of a larger effort by the Biden administration to crack down on companies that help Huawei circumvent U.S. restrictions.
Tensions between the United States and China are rising and this move will not go unnoticed.
Read on to learn more about the latest twist in this high-stakes battle.
Huawei connection
Sophgo, a Chinese chip design company with ties to Bitcoin mining equipment supplier Bitmain, has attracted the attention of the U.S. government. A recent survey found that by Taiwan Semiconductor Manufacturing Company (TSMC) Sophgo finally chose Huawei’s Ascend 910B AI processor.
The discovery that the processor is part of Huawei’s advanced artificial intelligence system has raised concerns in Washington.
The United States takes action
In response, the U.S. Commerce Department is working to add Sophgo to its Entity List, which would prevent the company from receiving critical U.S. technology and components. Although the chip was found in Huawei products, Sophgo denied any business dealings with the Chinese telecom giant, claiming it had no connection with Huawei.
However, U.S. officials remain skeptical, especially after the chip was discovered in Huawei systems.
Sophgo’s collaboration with Chinese entities
In addition to its ties to Huawei, Sophgo also has ties to Chinese state-owned organizations. The company supplies artificial intelligence chips to local government agencies, including police stations, for use in surveillance technology. The connection has alarmed U.S. officials, who worry the chips could be used in ways that threaten national security.
TSMC terminates cooperation with Sophgo
After the discovery, TSMC confirmed that the chip found in Huawei’s artificial intelligence system matched Sophgo’s design. Therefore, TSMC announced that it will stop supplying Sophgo. Although TSMC stopped supplying Huawei in 2020, the incident shows that despite restrictions, companies can still find ways to obtain critical components.
A new chapter in Sino-US technological competition
The Sophgo case is just the latest development in the ongoing tech rivalry between China and the United States. As the United States strives to maintain leadership in areas such as artificial intelligence, 5G and semiconductors, it is using sanctions and trade restrictions to limit China’s access to advanced technologies.
By targeting companies like Sophgo, the United States aims to slow China’s progress in these important areas—or so it seems.
