By Karen Freifeld (Reuters) -Taiwan Semiconductor Manufacturing Company notified the U.S. that one of its chips had been found in a Huawei product after tech research firm TechInsights took apart the product and revealed a possible violation of export restrictions on the Chinese company,

TSMC has advised the U.S. that there was an attempt by Huawei to violate sanctions against China restricting the export of AI chips to China, as the probe that could affect Apple chip production rolls on.

An investigation of Huawei Technologies Co.’s latest AI offering has unearthed an advanced processor made by Taiwan Semiconductor Manufacturing Co., suggesting that China is still struggling to reliably make advanced chips in sufficient quantities.

TSMC reported a potential attempt by Huawei to bypass U.S. export controls preventing them from manufacturing AI chips for the Chinese firm. Informed by a client order resembling Huawei's Ascend 910B chip,

Taiwan Semiconductor Manufacturing Company notified the U.S. a couple of weeks ago that one of its chips had been found in a Huawei device after a teardown by the tech research firm TechInsights, according to a person familiar with the matter.