TSMC has stopped supplying chips to Chinese chipmaker Sophgo and its subsidiary Bitmain on suspicion of cooperating with Huawei and transferring technology to it in violation of US sanctions. This was reported by The Register.

Sophgo, which develops chips based on the open RISC-V instruction set architecture, responds by saying that the company does not cooperate with Huawei.

“The investigation of the US Commerce Department on possible TSMC and Huawei link is not related to Sophgo and its product. Sophgo has never engaged in any direct or indirect business relationship with Huawei,” Sophgo said in a statement.

The chipmaker claims that the company fully complies with US export restrictions and has never violated these rules, and has provided a “detailed report on TSMC’s investigation” to prove its innocence.

Bitmain, a Chinese crypto hardware firm linked to Sophgo, also denies any involvement in the chip transfer, calling the allegations “false and baseless.”

However, it is worth noting that Bitmain’s track record in such cases is far from impeccable. In 2021, prosecutors raided Bitmain’s Taiwanese offices and accused two of its subsidiaries of attempting to illegally hire Taiwanese engineers.