TSMC’s discovery raises questions about how Huawei, considered China’s best hope of ascending the semiconductor industry, acquired advanced chips.

Chipmaking giant Taiwan Semiconductor Manufacturing Co. (TSMC) halted semiconductor shipments to a client that may have illegally sent the chips on to Huawei, according to Bloomberg. That follows reports that TSMC had informed the US government that its chips appeared in one of Huawei's AI accelerators.

The Republican chairman of the U.S. House of Representatives Committee on China demanded answers on Wednesday from the Commerce Department and TSMC after a chip made by the Taiwanese company was found in a device made by China's Huawei.