TSMC told Reuters that it has not delivered chips to Huawei since the sanctions went into effect and that it strictly adheres to US export restrictions. But Huawei has made headway in the Chinese market, launching new smartphones fuelled by chips made by another Chinese semiconductor provider, SMIC, which is also targeted by US sanctions.

The Biden administration added more than two dozen Chinese entities to a U.S. restricted trade list on Wednesday, including Zhipu AI, a developer of large

The United States is preparing to implement stricter regulations aimed at preventing advanced semiconductors from reaching China, following revelations that chips manufactured by Taiwan Semiconductor Manufacturing Company (TSMC) ended up in Huawei Technologies' devices despite existing restrictions.

The moves are part of the Biden administration’s last-gasp efforts to clamp down on China’s harnessing of AI for its military and tech sector.

President Joe Biden's administration added more than two dozen Chinese entities to its restricted trade list on Wednesday, including a company whose TSMC-made chip was illegally incorporated into a Huawei artificial intelligence processor.