As an analyst with over two decades of experience in the tech industry, I find myself intrigued by the ongoing saga between Xiamen Sophgo, TSMC, and Huawei. Having closely followed the rise and fall of Bitmain, I can’t help but see a hint of deja vu with this latest development.
In simpler terms, the Chinese semiconductor company Xiamen Sophgo, which has connections to Bitmain, has refuted any business ties with Huawei. This denial comes after Taiwan Semiconductor Manufacturing Company (TSMC) ended their partnership with Xiamen Sophgo following an American investigation into possible sanctions infractions.
Based on a report published by Reuters on October 27th, I’ve learned that Sophgo has allegedly procured chips similar to those found in Huawei’s Ascend 910B from TMSC, according to two individuals who possess inside knowledge about this situation.
According to a report from The Information dated October 17th, the United States Department of Commerce is examining whether TSMC unintentionally provided chips to Huawei, a company that has faced US sanctions since 2020 due to national security issues.
On its website, Sophgo issued a statement asserting they do not have a business connection with Huawei.
Sophgo clarified that their company and products were unrelated to the U.S. investigation involving TSMC and Huawei. Moreover, they have never interacted directly or indirectly with Huawei. To ensure transparency, Sophgo stated that they operate in full compliance with all relevant laws and regulations.
According to a report by The Information, it’s alleged that TSMC, a semiconductor manufacturing company based in Taiwan, produced chips for Xiamen Sophgo that bear resemblance to Huawei’s AI chip designs. This claim is supported by two sources with knowledge of the situation who spoke about the matter.
Sophgo, a company established in the year 2019, has its roots traced back to Bitmain, with Micree Zhan, one of Bitmain’s co-founders, being its founder. To this present day, it appears that both Sophgo and Bitmain have common domain registrations and email directories.
Bitmain began looking into AI chip development in 2018 at the direction of Zhan, in a bid to bolster its chip offerings outside of crypto.
The change in approach sparked disagreements between Zhan and his business partner Jihan Wu, with the latter advocating that the company should solely concentrate on manufacturing Bitcoin mining equipment.
Eventually, the distinct point of contention, combined with other matters, led to Zhan’s departure from the company in October 2019. Interestingly, Zhan was unveiling Bitmain’s “third generation” AI Chip – the Sophgo BM1684 – at a tech event in China when he was unexpectedly dismissed.
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2024-10-28 08:48