Biden Administration Plans Trade Restrictions On AI Firm Linked To Bitmain

According to Odaily, the Biden administration is reportedly planning to add Sophgo, an AI company linked to Bitmain, to the U.S. Department of Commerce's restricted trade list. This decision comes after allegations that chips manufactured by TSMC for Sophgo were illegally incorporated into Huawei's AI processors. Companies that violate U.S. national security and foreign policy interests are placed on this list, prohibiting exporters from shipping goods and technology to the U.S. without a license, which is likely to be denied. A spokesperson for the U.S. Department of Commerce declined to comment, and Sophgo did not immediately respond to requests for comment. In a statement from October, Sophgo asserted that it has never had any direct or indirect business relationship with Huawei. However, the company did not deny reports of TSMC cutting off chip supplies. Sophgo also stated that it provided TSMC with a detailed investigation report to demonstrate that its dealings were unrelated to Huawei. Earlier this month, the U.S. Department of Commerce initiated an investigation into TSMC to verify whether it supplied chips to Huawei, leading TSMC to halt chip supplies to Sophgo. Two informed sources confirmed that TSMC has ceased supplying chips to the company. Since 2020, Huawei has been prohibited from purchasing chips made with U.S. technology, including those produced by TSMC. TSMC has acknowledged using U.S. technology in its chip manufacturing process and has committed to complying with U.S. laws. Previous reports indicated that semiconductor research firm TechInsights claimed that upon dismantling Huawei's high-end AI accelerator chip, Ascend 910B, it was found to potentially be manufactured by TSMC, suggesting a possible violation of U.S. export controls.