WASHINGTON (Reuters)

The Republican chairman of the U.S. House of Representatives Committee on China has demanded answers from the Commerce Department and TSMC regarding a chip found in a Huawei device.

"Reports that cutting-edge TSMC-manufactured chips have contributed to Huawei’s AI development represent a catastrophic failure of U.S. export control policy," said Representative John Moolenaar in a statement. "Congress needs immediate answers from both (Commerce) and TSMC about the scope and volume of this disaster."

The Commerce Department and TSMC did not respond to immediate requests for comment.

This situation arises after it was reported that TSMC had suspended shipments to a customer upon discovering that one of its chips had ended up in a Huawei product.