Chipmaking giant Taiwan Semiconductor Manufacturing Co. (TSMC) halted semiconductor shipments to a client that may have illegally sent the chips on to Huawei, according to Bloomberg. That follows reports that TSMC had informed the US government that its chips appeared in one of Huawei's AI accelerators.

Taiwan Semiconductor Manufacturing Co. discovered this month that chips it made for a specific customer ended up with Huawei Technologies Co., a potential violation of US sanctions intended to sever the flow of technology to a Chinese national champion.

Taiwan Semiconductor Manufacturing Company notified the U.S. that one of its chips had been found in a Huawei product after tech research firm TechInsights took apart the product, a person familiar with the matter said,