TSMC Faces US Probe Over Huawei Chip Manufacturing

Published 16 days agoTSM

TSMC Faces US Probe Over Huawei Chip Manufacturing

The US Commerce Department is currently investigating Taiwan Semiconductor Manufacturing Company (TSMC) over potential violations of export controls concerning its chip production for Huawei Technologies. The probe is centered on whether TSMC has been involved in manufacturing smartphone chips for Huawei's Mate 60 series or AI server chips through intermediaries, which could contravene US sanctions against Huawei.

According to reports, if TSMC is found guilty of breaching these export controls, it could be subject to significant penalties, including fines exceeding $1 billion or temporary restrictions on accessing US technology. As TSMC heavily relies on US technology for its advanced chip production, such penalties could pose a substantial threat to its operations and strategic plans.

Despite the ongoing investigation, TSMC remains focused on complying with existing export controls. The company is still slated to receive substantial subsidies from the US for its Arizona fabrication plant, demonstrating continued US support. Nevertheless, the probe underscores the broader challenges faced by the semiconductor industry amidst geopolitical tensions and evolving US export regulations, as noted by publications like Insider Monkey.

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