Taiwan Semiconductor Manufacturing Corp (TSMC) has halted chip sales to a suspicious buyer after discovering that its chips were being used in Huawei’s Ascend 910B AI processors, according to an unnamed Taiwanese official. The 910B is a multi-chiplet processor designed for AI applications.

The buyer in question has not been named, and TSMC has not disclosed their identity to the Taiwanese government, according to another official. TSMC stopped selling chips to this buyer roughly two weeks ago, according to a trade and economic official who spoke with Reuters.

The discovery was made after research firm TechInsights opened up a 910B processor and identified a TSMC chip inside. TSMC then notified the US government, just days after reports emerged that the Department of Commerce was investigating the company.

In a statement to PCMag, TSMC emphasized its commitment to complying with all applicable rules and regulations, including export controls. The company also stated that it has a robust system in place for monitoring and ensuring compliance, and will take prompt action if any potential issues arise.

The US has had strict export bans in place since late 2022, preventing advanced chips from being sent to China or other US-sanctioned countries. TSMC has aligned itself with the US and received billions in funding to expand its chip manufacturing business in Arizona.

As the situation continues to unfold, it is important for TSMC to maintain transparency and communicate with relevant parties, including customers and regulatory authorities, to ensure compliance with all regulations.