Taiwan Semiconductor Manufacturing Co (TSMC) is under serious pressure from the United States. A possible billion-dollar penalty looms over the world’s largest chipmaker. This potential fine is linked to an ongoing U.S. export control crackdown.
According to sources, the U.S. Department of Commerce is investigating TSMC’s chips used by Huawei. The issue involves a chip manufactured by TSMC that ended up in Huawei’s AI processor. Although TSMC did not directly supply the Chinese tech giant, the chip matched one found in Huawei’s Ascend 910B.
This situation intensified due to a U.S. ban on Huawei. The company has long been on Washington’s trade blacklist. The list restricts access to products made with American technology. TSMC’s factories in Taiwan use U.S. chipmaking equipment. Therefore, they must follow strict American export rules.
These rules block TSMC from producing advanced chips for Chinese firms like Huawei without a U.S. license. However, in this case, a processor made its way into Huawei’s hardware. That raised serious red flags in Washington.
The ongoing U.S. export control crackdown has caused tensions in the global tech industry. It has pushed the U.S. to consider higher fines for violations. These penalties can reach up to twice the value of the illegal transactions.
TSMC spokesperson Nina Kao stated that the company has not supplied Huawei since September 2020. However, the Department of Commerce remains focused on enforcing its rules more aggressively.
At the same time, the U.S. continues to strengthen its semiconductor leadership. TSMC is playing a part in this effort. In January, the company began producing advanced 4-nanometre chips at its Arizona facility. By March, TSMC had announced a $100 billion investment plan to expand its U.S. operations.
This massive plan includes five new chip plants. The total U.S. investment now stands at $165 billion. This aligns with the Biden administration’s vision to grow American manufacturing power.
The U.S. export control crackdown not only targets security concerns but also reshapes global business. As Washington takes a firm stance, companies like TSMC must adjust or face serious consequences.
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