Ascend

Bitcoin

<ul class="wp-block-list">
 <li>TSMC’s halt on Sophgo chip supplies amid a U.S. probe could disrupt China’s AI and mining chip markets.</li>  
 <li>TechInsights reports Huawei’s new AI chip, made by TSMC, potentially violating U.S. tech export controls.</li>  
 <li>Bitmain's global plans face hurdles as tighter U.S. controls threaten advanced chip access for its affiliate, Sophgo.</li> 
</ul>  
<p>TSMC suspended chip supplies to Xiamen Sophgo, an AI chipmaker linked to Bitmain after the U.S. Department of Commerce launched an investigation. This probe is examining potential sanctions violations regarding Huawei, which has been under restrictions since 2020. Consequently, TSMC’s action against Sophgo, <a href="https://theminermag.com/news/2024-10-26/tsmc-bitmain-sophgo-huawei/" target="_blank" rel="noopener noreferrer nofollow">reportedly</a> led by Bitmain co-founder Micree Zhan, is part of a larger geopolitical move to tighten U.S. export controls over technology tied to China.</p>  
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
  https://twitter.com/WuBlockchain/status/1850180564760059966
 </div>
</figure>  
<p>TSMC’s AI processors for Sophgo show similarities with Huawei’s, prompting a Department of Commerce investigation. Semiconductor research firm TechInsights revealed that TSMC manufactured Huawei's Ascend 910B chip, one of China’s most advanced AI chips, triggering scrutiny from U.S. regulators over potential sanctions violations.</p>  
<p>This comes in stark contrast to the Ascend 910A, produced by SMIC, a Chinese chip manufacturer. Following TechInsights’ report, TSMC ceased shipments to Sophgo, further complicating the company’s supply chain amid tightening U.S.-China tech restrictions.</p>  
<h2 class="wp-block-heading" id="h-a-complex-web-of-affiliations">A Complex Web of Affiliations</h2>  
<p>Xiamen Sophgo, co-founded by Zhan in 2019, shares domain registries and email contacts with Bitmain, highlighting deep ties between the two companies. Bitmain, primarily focused on <a href="https://cryptonewsland.com/earn-cryptocurrency-with-sup-miner-free-bitcoin-cloud-mining-one-of-the-top-cloud-mining-in-the-world/" target="_blank" rel="noopener noreferrer nofollow">cryptocurrency mining hardware</a>, has significant stakes in the AI chip market, spurred by Zhan’s vision to diversify beyond Bitcoin ASICs.&nbsp;</p>  
<p>However, this strategic shift led to internal conflict with Bitmain’s other co-founder, Jihan Wu, who preferred to focus on cryptocurrency hardware. Their clash culminated in a power struggle in 2019, with Zhan temporarily ousted.</p>  
<p>In 2021, Zhan returned to Bitmain as chairman after a settlement with Wu, who moved on to lead Bitdeer and Matrixport. However, since Zhan’s return, Bitmain has largely abandoned<a href="https://cryptonewsland.com/major-setback-for-ai-giants-nvidias-blackwell-chips-face-significant-delay/" target="_blank" rel="noopener noreferrer nofollow"> direct AI chip development</a>, leaving Sophgo as its closest link to AI ventures.</p>  
<h2 class="wp-block-heading" id="h-geopolitical-and-business-implications">Geopolitical and Business Implications</h2>  
<p>This ongoing U.S. investigation could reshape China’s semiconductor landscape and may restrict Bitmain’s access to advanced chip technologies. Significantly, the U.S. recently expanded its authority to <a href="https://crsreports.congress.gov/product/pdf/R/R47012/2" target="_blank" rel="noopener noreferrer nofollow">restrict</a> foreign companies from supplying Huawei, which now applies to any products derived from U.S. technology. Additionally, given Bitmain’s longstanding role as a top Bitcoin ASIC designer, these restrictions could impact not only AI chip development but also the company’s broader operations.</p>   
<p>The post <a href="https://cryptonewsland.com/u-s-investigation-pressures-tsmc-to-cut/" rel="noopener noreferrer nofollow">U.S. Investigation Pressures TSMC to Cut Ties with Bitmain-Affiliate Sophgo</a> appeared first on <a href="https://cryptonewsland.com" rel="noopener noreferrer nofollow">Crypto News Land</a>.</p>

U.S. Investigation Pressures TSMC to Cut Ties with Bitmain-Affiliate Sophgo

Table of Contents

Crypto News Land

Other articles published on Oct 27, 2024

Ethereum Development Pushes Price Towards $3000, Traders Acquire ETH Coin Cutoshi As Momentum Exp...

Investors Load Up on These Altcoins in Anticipation Bull Run

FTX Resolves Dispute with Bybit Through a $2.28 Billion Agreement

New Russian Crypto Law Comes Into Effect November 1

The Terra You Missed, The Qubetics You Can’t Afford to: Don’t Let History Repeat

LUNC Targets Major Breakout with Ascending Triangle Approaching Key Resistance

Join our free newsletter for daily crypto updates!