06:41 AM EDT, 10/24/2024 (MT Newswires) -- (Update with company comment in fifth and sixth paragraph)

Taiwan Semiconductor Manufacturing ( TSM ) suspended shipments to an undisclosed client after finding a product from China's Huawei contained a chip supplied to that customer, Reuters reported Wednesday, citing a Taiwan official familiar with the situation.

The trade and economic official said that the matter is being investigated by the company, which has notified the US and Taiwan governments, Reuters said.

The official said the issue was an "important warning event" at the Taiwan company and may be traced back to Oct. 11 at the earliest, the report said. The US curbed the export of advanced artificial intelligence chips to China two years ago.

Taiwan Semiconductor Manufacturing ( TSM ) declined to comment, Reuters

"We are not aware of TSMC being the subject of any investigation at this Time," the company said.

It added "in compliance with the regulatory requirements, TSMC has not supplied to Huawei since mid-September 2020".

(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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