**Taiwan Semiconductor Manufacturing Company (TSMC)** has terminated its partnership with **PowerAIR**, a Singapore-based firm, due to a review revealing a potential **US export control breach**.
The decision was prompted by the discovery of a TSMC chip in a **Huawei Technologies AI processor**, raising compliance issues.
This follows a similar situation where TSMC had previously **suspended shipments** to Chinese firm **Sophgo** after a related chip incident.
Since the **US ban on Huawei in 2020**, TSMC stated it hasn't supplied products to the firm, yet chips have been found associated with Huawei's systems.
**Compliance scrutiny** by TSMC has also impacted other Chinese tech firms involved in **AI chip design**, as the US enhances restrictions on advanced chip sales.