TSMC is the latest US target over dealings with Huawei. According to The Information, the US Commerce Department has decided to investigate Taiwan Semiconductor Manufacturing Co. (TSMC).
The US is now investigating TSMC over dealings with Huawei
To be more accurate, the investigation will determine whether TSMC has been making artificial intelligence or smartphone chips for Huawei. If that ends up being the case, it would be a clear breach of US export rules.
As many of you know, Huawei has been in the US crossroads for quite some time now. Since 2020, the company has received a number of sanctions, including a ban from buying chips manfuactured using American equipment. National security concerns were cited.
In addition to that, Huawei was also banned from using US technology to make its own chips without the Commerce Department’s clear approval. TSMC was recently asked whether it was involved into making chips for Huawei, which TSMC denied.
TSMC issued a swift response to the allegations
TSMC issued a swift response to the probe, by saying that it’s a law abiding company, which is committed to complying with lawas and regulations. TSMC specifically mentioned export controls.
TSMC added the following: “If we have any reason to believe there are potential issues, we will take prompt action to ensure compliance, including conducting investigations and proactively communicating with relevant parties including customers and regulatory authorities as necessary”.
In related information, TSMC shares hit a record high today, after the company posted forecast-beating third-quarter earnings. That gave TSMC a market capitalization of about $874 billion, the highest of any company listed in Asia.
It remains to be seen what will happen next with the investigation. Huawei has been making some headway with its processors, in collaboration with SMIC, and the US has its doubts, apparently. We’ll be hearing more about this in the near future.
