TSMC Faces Billion-Dollar Penalty Over Huawei Chip Controversy

TSMC could face penalties exceeding $1 billion due to a U.S. export control probe involving a chip used in a Huawei AI processor. The investigation focuses on TSMC's collaboration with Sophgo, amidst U.S.-Taiwan trade negotiations. A hefty fine highlights increasing enforcement against export control violations.

Taiwan Semiconductor Manufacturing Company (TSMC) is embroiled in a significant controversy, risking penalties surpassing $1 billion over a U.S. export control investigation. This involves a chip used in Huawei's AI processor, according to anonymous sources.

The U.S. Department of Commerce is scrutinizing TSMC's dealings with Sophgo, a Chinese design company, due to a chip made by TSMC being found in Huawei's high-end Ascend 910B processor, a violation of U.S. trade restrictions.

This development emerges amid U.S.-Taiwan trade renegotiations, worsened by recent tariffs imposed by the Trump administration. Despite TSMC's commitment to compliance, the U.S. aims to impose harsh penalties on violators to regulate export controls effectively.

(With inputs from agencies.)