TSMC Under US Investigation Over Chip Sales to Huawei

From PC Mag: The US Department of Commerce is investigating whether Taiwan Semiconductor Manufacturing Company, chip-maker for firms like Apple and Nvidia, is also selling chips to Huawei. If so, it may be violating federal laws.

A TSMC manufacturing deal with or sales to Huawei could violate the US ban on Huawei, which aims to stop the China-based tech giant from using US equipment to produce its products. The federal department has reached out to TSMC to ask whether it's producing chips for Huawei, according to multiple sources cited by The Information on Thursday.

TSMC factories sending AI chips to Huawei could also be in violation of US export rules, which restrict the shipment of advanced chips to China. As a result, some US firms like Nvidia have been developing less-powerful chips to remain viable in the Chinese market—spurring a warning from the Commerce Department.

In a statement, TSMC didn't directly state whether it's producing chips for or selling chips to Huawei, but said it will comply with US laws. "If we have any reason to believe there are potential issues, we will take prompt action to ensure compliance, including conducting investigations and proactively communicating with relevant parties including customers and regulatory authorities as necessary," TSMC tells Reuters via email on Friday.

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