TSMC Faces U.S. Commerce Department Investigation Amid Huawei Ban

The U.S. Commerce Department has investigated Taiwan Semiconductor Manufacturing Company (TSMC) to determine whether it has been supplying chips to Huawei, violating the ongoing U.S. ban

This comes after TSMC reported record-breaking earnings for the quarter. The investigation centers around claims that Huawei has obtained smartphone and AI chips despite the U.S. ban preventing it from purchasing American semiconductors. The probe focuses on Huawei’s Kirin 9000s chips found in the Mate 60 series and its Ascend AI processor, which reportedly include components Huawei should not have access to under the ban. While Huawei maintains that its latest chips were sourced from China’s Semiconductor Manufacturing International Corporation (SMIC), reports suggest that TSMC may have manufactured the Kirin 9006C chip used in Huawei’s Qingyuan L450 laptop.

TSMC, in response to the investigation, reiterated its commitment to compliance with international laws and stated that it would take immediate action if necessary. The U.S. ban, imposed in 2020, bars Huawei from purchasing chips made with U.S. equipment and restricts its access to chip-making equipment, posing significant challenges to its production capabilities. The ongoing probe could have far-reaching consequences for TSMC, one of the world’s largest chip manufacturers. It may escalate tensions in the semiconductor industry between China and the U.S.