Bitmain denies connection to US supply chain investigation linked to Huawei chips

Bitmain has issued a statement distancing itself from recent media reports linking the company to a supply chain investigation involving Huawei. The Bitcoin mining equipment manufacturer emphasized that it is not engaged in such investigations and reserves the right to take legal action against outlets disseminating false information.

The statement read,

“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.

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.”

Per Reuters, Taiwan Semiconductor Manufacturing Company (TSMC) suspended shipments to China-based chip designer Sophgo after discovering that a chip it produced was found on Huawei’s Ascend 910B AI processor. Huawei is restricted from purchasing such technology due to US national security concerns. The US Department of Commerce expanded its authority in 2020 to prevent foreign-produced items that are the direct product of US technology from reaching Huawei.

Sophgo, reportedly affiliated with Bitmain, had ordered chips from TSMC that matched those found in Huawei’s processor. Reuters reported that Bitmain stated it complies with all laws and has never engaged in any business relationship with Huawei. Sophgo provided a detailed investigation report to TSMC to demonstrate its non-relationship with Huawei.

Due to US export restrictions, TSMC, the world’s largest contract chipmaker, has not supplied Huawei since mid-September 2020. The company proactively communicated with the US Department of Commerce but declined further comment. Huawei also stated it has not produced any chips via TSMC since the imposition of US export rules in 2020.

Bitmain’s association with Sophgo stems from shared co-founder Micree Zhan. Corporate records confirm Zhan co-founded both companies. Sophgo has been described as a Bitmain affiliate and communicated with the US Federal Communications Commission using a Bitmain email address named Xiamen Sophgo Technologies Ltd.

In 2021, Taiwanese prosecutors accused two Bitmain affiliates of illegally recruiting Taiwanese semiconductor engineers and conducting unauthorized research and development activities. According to the New Taipei prosecutors’ office, four Taiwanese defendants pleaded guilty and were fined.

The US government has expressed ongoing concerns about China’s access to advanced semiconductor technology, particularly in areas related to artificial intelligence and national security. Huawei, a major Chinese telecommunications company, has been under US sanctions since 2020, restricting its ability to procure advanced chips and technology that could pose risks to US interests.

TSMC’s discovery of its chip on Huawei’s Ascend 910B processor prompted the company to notify US authorities and halt shipments to Sophgo. The Ascend 910B, released in 2022, is considered one of a Chinese company’s most advanced AI chips. Before the 2020 restrictions, TSMC supplied chips for Huawei’s Ascend series.

The situation pressures Chinese companies to develop domestic solutions in advanced semiconductor technology. The interplay between international trade regulations and technological advancements continues to shape the dynamics of the global tech industry.

By firmly denying any involvement in the supply chain investigation, Bitmain aims to distance itself from potential legal and regulatory repercussions. The company emphasizes its compliance with all laws and its lack of any business relationship with Huawei to reassure stakeholders and maintain its position in the Bitcoin mining sector.

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