In a significant shift in U.S.-China tech relations, the Biden administration is poised to blacklist Sophgo, a
fabless Chinese chipmaker linked to Huawei's AI technology. The decision comes just months before the end of the
current administration, marking a continued focus on restricting Chinese access to advanced technologies.
Sophgo, which developed a chip manufactured by TSMC, was found to have its products integrated into Huawei's
Ascend 910B AI processor.
Affiliated with the bitcoin mining giant Bitmain, Sophgo is expected to join the ranks of entities facing
severe trade restrictions, akin to those imposed on Huawei back in 2019. Being placed on the U.S. Commerce
Department's Entity List would bar Sophgo from receiving supplies from American companies without a specific
license, effectively crippling its operations in international markets.
The escalation of punitive measures against Chinese technology firms stems from growing concerns over national
security and the potential for technology to be diverted to military applications. In 2020, the U.S. set
restrictive export rules that prevented foundries using U.S. technology from producing high-end semiconductors
for Huawei. This restrictive environment aimed to curtail Huawei's influence in the 5G market and other
high-tech sectors. Despite these efforts, the recent unveiling of Huawei's Mate 60 Pro smartphone, powered by a
new 5G chip developed by SMIC, suggests that the Chinese tech firm continues to find ways to innovate.
TechInsights' investigation revealed the TSMC chip within the Ascend 910B, leading to a suspension of shipments
to Sophgo after TSMC reported the findings to the U.S. government. This has triggered an ongoing investigation
into the connection between Sophgo and Huawei amidst rising scrutiny from U.S. regulators.
The Ascend 910B, introduced by Huawei in 2022, has been lauded as one of the most advanced AI chips to emerge
from China. The subsequent model, the Ascend 910C, is set for mass production early next year with ambitions to
rival NVIDIA in the AI chip space. However, following a recent U.S. directive preventing TSMC from shipping
advanced chips to Chinese manufacturers, Huawei claims it has not procured chips from TSMC since the
introduction of new export regulations.
Sophgo is about to be placed on the Commerce Department's Entity List. | Image credit-Gigazine
Sophgo has publicly stated that it maintains no direct business ties with Huawei, primarily engaging in
contracts with local governments and state-owned enterprises. In recent years, the chipmaker's products have
been utilized by various institutions in China, including state-run universities and law enforcement agencies
seeking to enhance surveillance technologies.
