Key Takeaways
- Bitmain has denied any link to an alleged investigation involving TSMC, Sophgo, and Huawei.
- Taiwan Semiconductor Manufacturing Company reportedly suspended shipments to Sophgo after a chip it made was found in a Huawei AI processor.
- Huawei is restricted from purchasing semiconductors and AI technology from U.S. companies.
Bitcoin mining equipment manufacturer Bitmain has vehemently denied any links to an alleged supply chain investigation involving Sophgo and Huawei.
The news comes after media outlets reported Taiwan Semiconductor Manufacturing Company (TSMC) allegedly suspended shipments to Sophgo after a chip it made was found on a Huawei AI processor.
TSMC, Sophgo, and Huawei
Huawei is restricted from purchasing semiconductors and AI technology due to stringent U.S. measures and export controls.
According to Reuters, citing sources familiar with the matter, Sophgo had allegedly ordered chips from TSMC that matched those found in the Huawei processor.
Upon suspending the chip, the publication alleged that TSMC had alerted the U.S. Department of Commerce and Taiwan authorities and began a detailed investigation into an undisclosed company.
The Information then reported that Sophgo, owned by Bitmain, was the company at the forefront of the probe.
Sophgo denied its link to the investigation, claiming that the possible investigation into TSMC and Huawei “is unrelated to Sophgo and its product.”
“Sophgo has been conducting business in strict compliance with applicable laws and regulations, including but not limited to all the applicable U.S. national export control laws and regulations,” the company said.
Bitmain Denies Link
Bitmain has been especially vocal in denying any affiliation to the potential investigation. The company has threatened legal action against media outlets reporting false information.
“BITMAIN specializes in designing cryptocurrency mining rigs. BITMAIN is not involved in or otherwise related to the supply chain investigation as reported by the media recently,” the company wrote in a statement.
“Any news alleging that BITMAIN is involved in the aforementioned event is false and baseless. BITMAIN reserves the right to take legal action against such media that publishes and disseminates false information.”
The U.S. and China
Over the past few years, the U.S. has ramped up its action against China’s access to advanced semiconductor technology, citing national security concerns.
U.S. officials have voiced worries that China’s ownership of advanced semiconductor technology could significantly enhance its military capabilities.
As AI advances rapidly, these crucial chips facilitate processing speeds and data management capabilities crucial to surveillance, cybersecurity, and autonomous military systems.
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
