Overview

• TSMC is under investigation by the U.S. Department of Commerce for potentially violating export controls by indirectly supplying Huawei with chips made using U.S. technology.
• The probe focuses on chips manufactured for Chinese company Sophgo that were reportedly found in Huawei's Ascend 910B AI processor.
• TSMC suspended shipments to Sophgo in late 2024 after evidence of chip diversion was uncovered by TechInsights.
• If found liable, TSMC could face a fine exceeding $1 billion, calculated as double the value of the alleged unauthorized transactions.
• The investigation highlights broader U.S. efforts to tighten export controls on advanced technology and curtail China's access to critical semiconductor components.