20 AI News Investors Should Not Miss

6. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)

Number of Hedge Fund Holders: 156

Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM), a leading Taiwanese multinational in semiconductor manufacturing and design, is the primary producer of advanced chips for AI applications. As the world’s largest contract chipmaker, it has been capitalizing on the rapid growth of AI and the growing spending on artificial intelligence (AI) computer chips. It does so by focusing on the foundry business, i.e. making chips designed by clients that lack their own factories.

Two years ago, the US restricted the export of high-end AI chips to China in order to limit the Chinese’s military capabilities. However, it has recently come to light by a tech research firm called TechInsights that Huawei Technologies Co.’s latest AI offering includes an advanced processor made by Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM). The news suggests that China is still struggling to reliably make its own advanced chips in sufficient quantities.

On October 22, TSMC revealed that it had notified the US that one of its chips had been found in a Huawei product. This discovery emerged after Tech Insights dismantled the product, uncovering a potential breach of export restrictions involving the Chinese company. According to a source, the teardown was of the Huawei Ascend 910B, assumed the most advanced AI chip from a Chinese company. It is said that the TSMC chip was one within a multi-chip system. In a statement on Monday, TSM announced that it has been proactive in letting the Commerce Department regarding the matter, further clarifying that it hasn’t supplied chips to Huawei since mid-September 2020.

“We maintain a robust and comprehensive export system for monitoring and ensuring compliance”.

-TSMC said in its statement.