TAIPEI (TVBS News) — Taiwan Semiconductor Manufacturing Company (TSMC, 台積電), the world's leading chipmaker, responded firmly on Wednesday (April 9) to international media reports suggesting connections between its semiconductor products and Chinese tech giant Huawei (華為). The company emphasized its strict adherence to legal regulations, stating it had completely halted supplies to Huawei since mid-September 2020 and is actively cooperating with an ongoing U.S. Department of Commerce investigation into the matter.
Reuters reported that TSMC might face a substantial US$1 billion (NT$33 billion) fine or possibly higher penalties to resolve the U.S. Commerce Department's investigation into how TSMC-manufactured chips appeared in Huawei's artificial intelligence processors. According to anonymous sources familiar with the matter, investigators are specifically examining the path through which semiconductors manufactured for Sophgo (算能科技), a Chinese chip design company, ultimately found their way into Huawei's sophisticated "Ascend 910B" AI processors despite export restrictions.
The potential financial penalty could also exceed the aforesaid threshold, as U.S. export control regulations permit authorities to impose fines of up to twice the value of the transactions in question. Lennart Heim, a researcher at RAND's Technology and Security and Policy Center, provided context to the scope of the issue, noting that TSMC-produced semiconductors matching Sophgo's order specifications might number nearly 3 million units and could have ultimately reached Huawei despite export restrictions.
Heim advocated for a more cautious approach, arguing that TSMC should entirely avoid supplying chips specifically designed for artificial intelligence applications to any companies based in China, citing the heightened risk that such advanced components could be diverted to blacklisted entities like Huawei. Reuters reported it could not determine how the incoming Trump administration would address this complex issue involving TSMC or when a resolution might be reached. When contacted about the investigation, a U.S. Commerce Department spokesperson declined to offer any comment on the matter.
