TSMC Warns of Limits of Ability to Keep Its AI Chips From China

Taiwan Semiconductor Manufacturing Co. listed the challenges of ensuring export control compliance by its customers, months after the company’s artificial intelligence silicon was found to have flowed to US-sanctioned Huawei Technologies Co. via intermediaries.

“TSMC’s role in the semiconductor supply chain inherently limits its visibility and information available to it regarding the downstream use or user of final products that incorporate semiconductors manufactured by it,” the Hsinchu, Taiwan-based company said in its latest annual report released on Friday.

The world’s largest contract chipmaker said the constraint impedes its ability to prevent unintended end-uses of its semiconductors, as well as ...