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

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.

Reuters and the Financial Times reported the development today. Earlier, sources told The Information that the U.S. Commerce Department is investigating whether TSMC has made artificial intelligence or smartphone chips for Shenzen-based Huawei Technologies Co. Huawei was placed on a U.S. trade restriction list in 2019.