In summary
- Bitmain, a major Cryptocurrency Mining hardware manufacturer, refuted claims linking it to a supply chain investigation involving Huawei following multiple media reports.
- The company issued an official statement on Twitter denying any involvement in the ongoing investigation, calling the reports “false and baseless.”
- Bitmain also warned that it could take legal action against media outlets that spread false information.
Bitmain, a major cryptocurrency mining hardware manufacturer, refuted claims linking it to a supply chain investigation involving Huawei following multiple media reports.
The company issued an official statement on Twitter yesterday denying any involvement in the ongoing investigation, calling the reports “false and baseless.”
Bitmain also warned that it could take legal action against media outlets that spread false information.
The controversy arose after a recent Reuters report stating how Taiwan Semiconductor Manufacturing Company (TSMC) stopped chip shipments to Sophgo, a Chinese chipmaker affiliated with Bitmain.
The investigation began when a chip manufactured by TSMC was discovered embedded in Huawei’s Ascend 910B artificial intelligence processor, two people familiar with the matter highlighted in the report.
The report raised concerns about a possible violation of US export regulations, as Huawei has been under restrictions since 2020, prohibiting its access to US-derived technologies due to national security concerns.
TSMC immediately notified US and Taiwanese authorities of the situation and suspended its shipments to Sophgo while the investigation continues.
The U.S. Department of Commerce, which enforces export controls, stated that it is aware of the situation but did not confirm whether an official investigation is underway into the matter, according to the report.
Huawei has denied sourcing chips from TSMC following US export restrictions in 2020, which were aimed at limiting Huawei’s access to foreign technologies made with US components.
The restrictions fall under the Foreign Direct Product Rule (FDPR), a measure implemented by the US Department of Commerce to prevent companies like TSMC from supplying advanced chips to Huawei without a license from the US government.
Sophgo, co-founded by ousted Bitmain CEO Micree Zhan, also denied any direct involvement in Huawei-related supply chain transactions.
Sophgo issued a similar statement to Bitmain, clarifying that it has never done business with Huawei and remains in full compliance with all export laws.
According to the statement, the chipmaker provided TSMC with a detailed report to clear its name and hinted at legal action if inaccurate reporting continues to damage its reputation.
Zhan was removed from his leadership position at Bitmain in 2019 following a power struggle with co-founder Jihan Wu.
Wu’s strategic removal of Zhan involved reducing his voting rights through internal maneuvering, triggering legal battles that eventually allowed Zhan to partially regain control of Bitmain through litigation in 2020.
Huawei’s problems with US regulators have persisted over concerns that its technology poses national security risks.
In August 2020, the US Department of Commerce announced sanctions restricting any foreign semiconductor company from selling chips developed or produced with US software or technology to Huawei.
These restrictions have disrupted Huawei’s supply chains, forcing the tech giant to explore alternative channels to maintain its operations.
Bitmain and Huawei did not immediately respond to a request for comment from Decrypt.
Edited by Stacy Elliott.
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