US Investigates TSMC's Alleged Huawei Links

The United States is reportedly considering imposing a fine of $1 billion or more on Taiwan Semiconductor Manufacturing Company Limited (TSMC) for allegedly violating sanctions against Huawei Technologies Co., Ltd. The investigation focuses on TSMC's cooperation with Huawei on smartphones and AI-powered chips.

Details of the Allegations

Sources indicate that the US Commerce Department suspects the connection is facilitated through Sophgo, a China-based technology design company. Sophgo, which orders chips from TSMC, has been accused of collaborating with Huawei, a claim both companies have denied. It is alleged that a TSMC chip was found in Huawei's Ascend 910B AI processor through this partnership.

TSMC's Response

Following the announcement of the investigation, TSMC pledged to "take prompt action to ensure compliance" with US sanctions. Huawei has been under US sanctions due to its alleged ties with the Chinese government, raising further questions about the nature of its relationship with TSMC.