U.S. to Blacklist Chinese Chip Designer Sophgo

The Biden administration is preparing to add Chinese chip designer Sophgo to the U.S. Commerce Department's Entity List, according to an individual with knowledge of the situation.

Sophgo, an affiliate of bitcoin mining equipment provider Bitmain, has been implicated in the illegal use of a chip made by Taiwan Semiconductor Manufacturing Corp. (TSE: TSMC) in a Huawei AI processor.

The decision to blacklist Sophgo comes after the company was identified as having ordered a chip from TSMC that was identical to one found in Huawei's Ascend. The Commerce Department, when contacted, declined to comment on the situation.

This action against Sophgo is part of the broader U.S. government strategy to regulate the use of technology that could potentially pose a national security risk. The Entity List identifies foreign parties that are barred from receiving certain items subject to U.S. export regulations.

The decision to blacklist Sophgo demonstrates the Biden administration's ongoing scrutiny of Chinese technology firms and their supply chains.

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