U.S. Investigates TSMC Dealings with Huawei Over Possible Export Violations

The U.S. Commerce Department is looking into whether TSMC, a semiconductor manufacturer, produced chips for Huawei that could be for artificial intelligence or smartphones. This investigation may indicate that TSMC violated U.S. export rules, as reported by The Information.

Since 2020, Huawei has been prohibited from purchasing chips made with U.S. technology or equipment unless they have specific permission. Officials are trying to find out if TSMC accepted orders from Huawei indirectly, using middlemen, and whether TSMC followed the necessary procedures to identify who its customers are.

In response to the investigation, TSMC stated that it is a “law-abiding company.” The focus of the probe is on making sure that national security regulations are being followed. Investigators are examining whether Huawei managed to bypass these restrictions through indirect orders.