The U.S. Commerce Department is investigating Taiwan Semiconductor Manufacturing Co. (TSMC) over potential indirect chip production for Huawei Technologies Co., potentially violating export regulations. The probe, still in its early stages, focuses on whether TSMC is manufacturing AI or smartphone chips for the Chinese tech giant.
TSMC, the world’s largest contract chipmaker, has been contacted by U.S. officials in recent weeks regarding its dealings with Huawei. The investigation centers on the possibility that Huawei may be using intermediaries or alternate company names to place orders with TSMC.
The Taiwanese firm, which halted direct supplies to Huawei in 2020 following U.S. restrictions, maintains its commitment to compliance with all applicable laws and regulations. TSMC emphasized its comprehensive export control mechanism and readiness to conduct due diligence when necessary.
If found in violation, TSMC could face fines or more severe penalties, including temporary restrictions on access to U.S. technology. The outcome of this investigation could have significant implications for the global semiconductor industry and U.S.-China tech relations.
