According to SemiAnalysis, Huawei has acquired a hefty stash of 7nm processors from Taiwan’s TSMC, potentially funnelling them through the shadowy Chinese firm Sophgo, which TSMC previously blacklisted. 

The chips are earmarked for Huawei's next-gen Ascend 910C AI processor, which is set to close the performance gap with US-made gear, including Nvidia’s Blackwell-based NVL72 cluster. 

If verified, this pipeline would undermine any faith in US export curbs. SemiAnalysis claims, “Neither of the parties is concerned about violating trade policies.” 

Huawei’s 910C, though designed in China, is heavily reliant on imported tech — high-bandwidth memory from Samsung, wafers from TSMC, and production gear from the US, Japan, and the Netherlands. 

TechInsights says the bulk of these AI chips are using foreign semiconductors. Huawei apparently avoids SMIC’s 7nm process, branding it too immature. 

Estimates put Huawei’s haul of TSMC 7nm silicon at around $500 million, possibly obtained before tighter controls kicked in. This would be the same type of kit that landed TSMC a $1 billion fine after it surfaced in Huawei’s previous Ascend 910B lineup. 

TSMC had halted direct orders to Huawei-linked outfits, but that hasn’t stopped the silicon from seeping through cracks in the global supply chain. 

While Huawei’s latest workaround has yet to be officially confirmed, the claim adds to growing evidence that the US strategy of containment via sanctions isn’t working. 

Major Chinese firms are still bagging cutting-edge components via creative loopholes or the booming black market, leaving US policymakers red-faced and scrambling for Plan B.