TSMC Faces $1 Billion Fine Over Alleged U.S. Export Control Violations
Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest chipmaker, may face a fine of over $1 billion for potential violations of U.S. export control laws, according to Reuters.
Sources indicate that a chip produced for Chinese company Sophgo was found to match those used in Huawei’s advanced AI processor, the Ascend 910B. Huawei is currently on the U.S. restricted trade list, and TSMC’s use of U.S. technology in its manufacturing process places the company under U.S. export controls.
The report states that TSMC has produced approximately 3 million chips matching Sophgo’s design, which could potentially reach Huawei indirectly. The situation caught the attention of the U.S. Department of Commerce, prompting an investigation.
Although no formal charges have been filed yet, such violations could result in penalties that may double the transaction value.
TSMC has stated that it has not supplied any chips to Huawei since September 2020 and emphasized its commitment to compliance with the law.
