Recent reports from U.S. media indicate that the U.S. Department of Commerce is investigating whether TSMC is in violation of regulations by selling AI chips to Huawei. According to the technology news site The Information, two sources familiar with the matter have revealed that the Department of Commerce is looking into whether TSMC has been producing artificial intelligence (AI) or smartphone chips for Huawei, which would contravene U.S. export rules.
The sources noted that the Department reached out to TSMC in recent weeks to inquire if the company has been involved in manufacturing smartphone or AI chips for Huawei.
One avenue of investigation for the Department includes the possibility that Huawei may have been using different company names to place orders, thereby indirectly purchasing chips from TSMC via intermediary firms.
This has led the Department of Commerce to question whether TSMC conducted adequate Know Your Customer (KYC) due diligence when accepting orders.
The Information added that if the Department of Commerce determines that TSMC’s dealings with Huawei violate U.S. export regulations, the agency could impose fines or more severe penalties, such as temporarily restricting TSMC’s access to U.S. technology.
Sources indicated that this investigation into TSMC is still in its early stages, and it remains unclear how long it will take for the Department of Commerce to gather information and reach a conclusion.
A spokesperson for the U.S. Department of Commerce declined to comment, and Huawei has not issued a statement. TSMC has stated that it is committed to complying with all applicable rules and regulations, including export controls, and that it will take action to ensure compliance should any potential issues arise.
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