tl;dr
Bitmain, a major cryptocurrency mining hardware manufacturer, has denied any involvement in a supply chain investigation linked to Huawei. The controversy arose after reports that Taiwan Semiconductor Manufacturing Company (TSMC) halted chip shipments to Sophgo, a Chinese chip manufacturer associate...
Bitmain denied any involvement in a supply chain investigation linked to Huawei after Taiwan Semiconductor Manufacturing Company (TSMC) halted chip shipments to Sophgo, a Chinese chip manufacturer associated with Bitmain. This decision came after a TSMC-made chip was found in Huawei's processor, raising concerns about potential breach of U.S. export regulations. Both Huawei and Sophgo refuted any connection to the chip and remain compliant with export laws, amidst ongoing tensions between Huawei and U.S. regulators over national security concerns.
Bitmain categorically refuted claims linking it to the supply chain investigation and warned of potential legal action against media outlets spreading false information. The controversy surfaced after a recent Reuters report stating how TSMC suspended its shipments to Sophgo following the discovery. The investigation began when the TSMC-made chip was found embedded in Huawei’s processor, raising concerns about a potential breach of U.S. export regulations. TSMC immediately informed U.S. and Taiwanese authorities and suspended its shipments to Sophgo while the investigation continues. The U.S. Department of Commerce stated that it is aware of the situation but did not confirm whether an official investigation into the matter is underway. Huawei and Sophgo both denied any direct involvement in the supply chain controversy, reiterating their compliance with export laws and hinting at potential legal action if inaccurate reports continue to damage their reputation.
The wider context of the supply chain controversy includes Bitmain's internal power struggle, where co-founder Micree Zhan was ousted as CEO in 2019, triggering legal battles that allowed Zhan to regain partial control over Bitmain through litigation in 2020. Meanwhile, Huawei’s ongoing troubles with U.S. regulators have persisted due to concerns about its technology posing national security risks. The U.S. Commerce Department's sanctions in 2020 disrupted Huawei's supply chains, forcing the tech giant to seek alternate channels to maintain operations.
More about MicroStrategy Incorporated
MICROSTRATEGY INCORPORATED
MicroStrategy Incorporated provides global business analysis software and services. The company is headquartered in Tysons Corner, Virginia.
Industry: TECHNOLOGY
Sector: SERVICES-PREPACKAGED SOFTWARE
Market Cap: 47,237,390,000
Dividend Yield: None
EPS: -1.87
P/E Ratio: 2.901
Return on Equity: -0.437
Revenue: 480,634,000
Stock Price: 201.97
Volatility: -0.775
Beta: -0.074