12:12 PM EST, 12/20/2024 (MT Newswires) -- The Biden administration is planning to blacklist Sophgo, a Chinese chip designer, for illegally incorporating a chip made by Taiwan Semiconductor Manufacturing ( TSM ) into a Huawei AI processor, Reuters said Friday, citing a person familiar with the situation.

Sophgo is set to be added to the US Commerce Department's Entity List after ordering a chip that matches one found in Huawei's Ascend 910B processor, the report said.

Companies are added to the Entity List for actions that contradict US national security and foreign policy interests, and the department's move will prevent US exporters from supplying Sophgo without a license, which is likely to be denied, the report said.

The Commerce Department declined to comment, Reuters said.

The agency didn't immediately respond to a request for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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