Following recent reports that Chinese company Phytium Technology helped Huawei bypass U.S. export controls to obtain advanced TSMC chips, The New York Times published an investigative follow-up, confirming that Phytium Technology was acting as a front company for Huawei. The report also cites DSET non-resident fellow Min-Yan Chiang, who provided an analysis of Phytium Technology’s background.
Chiang explained to The New York Times that while Huawei has long been subject to U.S. export restrictions, the U.S. still allows TSMC to sell chips to Chinese companies that are not officially blacklisted. This creates a potential loophole, where Huawei can place orders through third parties, effectively circumventing U.S. controls to access TSMC-manufactured chips.
According to sources cited in The New York Times report, Phytium Technology is the front company in question. Chiang, referencing his DSET research report, elaborated:
“Phytium Technology was founded by Jihan Wu, CEO of Bitmain, who retains partial ownership of the company. Bitmain is a major Chinese manufacturer of cryptocurrency mining hardware and AI processors and is also one of TSMC’s key Chinese customers.”
Phytium Technology has denied supplying Huawei. As of now, neither Taiwanese nor U.S. authorities have issued further statements on the matter.
International Media Coverage and DSET’s Position
Over the weekend, Reuters and The Information were the first to identify Phytium Technology as the third-party company linked to Huawei. Reuters also referenced Min-Yan Chiang’s DSET research, which examined Phytium Technology’s ties to Bitmain.
On the following day, Nikkei Asia reported that TSMC had cut off shipments to at least two companies suspected of having ties to Huawei.
As stated in our previous statement, DSET does not have independent verification of whether Phytium Technology is definitively serving as Huawei’s front company.
However, DSET remains committed to sharing research on Bitmain, Phytium Technology, and Huawei’s shadow company network with the international community and policymakers in Taiwan and allied countries. Strengthening economic security frameworks remains a top priority.
Further Reading:
1. DSET Research Report – How China Recruits Taiwan’s Chip Design Talent Remotely: A Case Study of Bitmain and Taiwan’s Economic Security Framework: Read the full report
2. DSET Report: Bitmain and Phytium Technology Network Analysis: View the relationship chart
3. The New York Times Report – TSMC Chips Ended Up in Devices Made by China’s Huawei Despite U.S. Controls: Read the full article