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2w ago

TSMC Faces Potential $1 Billion Fine Over U.S. Export Control Probe

The U.S. Department of Commerce is investigating TSMC's chip production for Sophgo, linking it to restricted Huawei AI processors.

Semiconductor chips are seen on a circuit board of a computer in this illustration picture taken February 25, 2022. REUTERS/Florence Lo/Illustration/File Photo
U.S. Commerce Secretary Howard Lutnick speaks next to U.S. President Donald Trump and C.C. Wei, Chairman and CEO of TSMC, as they make an announcement about an investment from Taiwan Semiconductor Manufacturing Company (TSMC), in the Roosevelt Room at the White House in Washington, D.C., U.S., March 3, 2025. REUTERS/Leah Millis/File Photo
A logo of chip giant TSMC can be seen in Tainan, Taiwan December 29, 2022.REUTERS/Ann Wang/File Photo
TSMC building

Overview

  • The U.S. Department of Commerce is investigating TSMC for potential export control violations tied to chips found in Huawei’s Ascend 910B AI processor.
  • TSMC-produced chips for China-based Sophgo are suspected to have been diverted to Huawei, a company barred from receiving U.S.-technology-based products.
  • A potential fine exceeding $1 billion could be imposed, reflecting the value of the transactions and heightened U.S. enforcement of export regulations.
  • TSMC has denied supplying Huawei since mid-2020 and stated its cooperation with U.S. authorities in the ongoing investigation.
  • The case unfolds during sensitive U.S.-Taiwan trade negotiations, with broader implications for global semiconductor supply chains and geopolitical tensions.