Taiwan Semiconductor Manufacturing Company notified the U.S. that one of its chips had been found in a Huawei product after tech research firm TechInsights took apart the product, a person familiar with the matter said,

TSMC has advised the U.S. that there was an attempt by Huawei to violate sanctions against China restricting the export of AI chips to China, as the probe that could affect Apple chip production rolls on.

Reuters and the Financial Times reported the development today. Earlier, sources told The Information that the U.S. Commerce Department is investigating whether TSMC has made artificial intelligence or smartphone chips for Shenzen-based Huawei Technologies Co. Huawei was placed on a U.S. trade restriction list in 2019.

Possible export-controls violation benefiting mainland-based tech titan hit by American sanctions could lead to penalties.

Taiwan Semiconductor Manufacturing Company notified the U.S. a couple of weeks ago that one of its chips had been found in a Huawei device after a teardown by the tech research firm TechInsights, according to a person familiar with the matter.

An investigation of Huawei Technologies Co.’s latest AI offering has unearthed an advanced processor made by Taiwan Semiconductor Manufacturing Co., suggesting that China is still struggling to reliably make advanced chips in sufficient quantities.