Bitmain, a leading manufacturer of Bitcoin mining equipment, has publicly denied involvement in an investigation concerning alleged supply chain issues linked to Huawei, according to statements released by the company on social media. This response comes amid reports of Taiwan Semiconductor Manufacturing Company (TSMC) suspending chip shipments to Sophgo, a Chinese company with reported ties to Bitmain, due to the discovery of TSMC chips in Huawei’s AI processors. Bitmain’s recent Twitter statement called the allegations “false and baseless” and signaled potential legal action against media outlets that published the reports.

According to sources cited by Reuters, the investigation began when TSMC identified one of its chips embedded in Huawei’s Ascend 910B AI processor, an incident reported to both U.S. and Taiwanese authorities. In response, TSMC halted its shipments to Sophgo, a chipmaker associated with former Bitmain CEO Micree Zhan. Zhan’s company, Sophgo, denied conducting business with Huawei and stated it had fully complied with U.S. export laws. The U.S. Department of Commerce, which oversees export control enforcement, confirmed awareness of the reports but did not specify whether it was launching an investigation.

The controversy follows the U.S. Department of Commerce’s 2020 ban on Huawei’s access to U.S.-derived technologies, citing national security risks associated with Huawei’s technology. The restrictions fall under the Foreign Direct Product Rule (FDPR), which blocks any foreign semiconductor company using U.S. technology from supplying chips to Huawei without a specific license.

Bitmain has been emphatic in distancing itself from the allegations, stating: “Bitmain specializes in designing cryptocurrency mining rigs. Bitmain is not involved in or otherwise related to the supply chain investigation.” Additionally, the company warned that it may take legal action against media entities that continue to publish “false and baseless” information implicating Bitmain in the ongoing inquiry.

This situation underscores the broader tensions between the U.S. and China over advanced technology access, especially in AI and semiconductor industries. As regulatory scrutiny on Chinese technology companies persists, both Bitmain and Sophgo have reiterated their commitment to abiding by international trade laws.

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