Taiwan Semiconductor Manufacturing Co. discovered this month that chips it made for a specific customer ended up with Huawei Technologies Co., a potential violation of US sanctions intended to sever the flow of technology to a Chinese national champion.

Taiwan Semiconductor Manufacturing Co has suspended shipments to a customer after it discovered that one of its chips supplied to the client ended up in a Huawei product, according to a Taiwan official familiar with the situation.

Chipmaking giant Taiwan Semiconductor Manufacturing Co. (TSMC) halted semiconductor shipments to a client that may have illegally sent the chips on to Huawei, according to Bloomberg. That follows reports that TSMC had informed the US government that its chips appeared in one of Huawei's AI accelerators.