Moolenaar Urges Commerce to Clarify Chip Rule Meant to Stop Huawei Diversion

House Select Committee on China Chairman John Moolenaar (R-Mich.) is pressing the Commerce Department to confirm that chip manufacturers must continue checking advanced-chip orders to prevent them from reaching restricted Chinese companies.
The safeguards were introduced in January 2025 after chips ordered from Taiwan Semiconductor Manufacturing Co. (TSMC) by Chinese design firm Sophgo during 2023 and 2024 were found inside Huawei’s Ascend 910B artificial intelligence processor.
In an Aug. 6 letter to Jeffrey Kessler, who oversees the department’s Bureau of Industry and Security (BIS), Moolenaar said Sophgo placed roughly $500 million worth of wafer orders with TSMC in its own name and then diverted the resulting chips to Huawei…. 

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