US Probes TSMC's Alleged Huawei Ties

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

Allegations Through Sophgo

Sources indicate that the US Commerce Department suspects TSMC's involvement with Huawei might be 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. The investigation focuses on how a TSMC chip was found in Huawei's Ascend 910B AI processor.

TSMC's Response and Huawei's Sanctions

Following the initiation of the investigation, TSMC pledged to ensure compliance with US sanctions. Huawei, on the other hand, faces US sanctions due to alleged connections with the Chinese government. The case underscores the escalating tensions in US-China tech relations.