US Commerce Department Probes TSMC Over Alleged Chip Supply to Huawei: Details Here

US Commerce Department Investigates TSMC

The United States Department of Commerce has launched an investigation into TSMC, the world’s largest contract chipmaker, over suspected violations of US restrictions on supplying chips to Huawei. This development comes on the heels of TSMC’s record-breaking quarterly earnings report, casting a shadow over the company’s recent success.

According to a report by The Information, the Commerce Department has contacted TSMC to inquire about the possibility of direct or indirect chipset supply to Huawei. This probe focuses on the presence of advanced components in Huawei’s Mate 60 series and its new Ascend AI processor, which should have been inaccessible to the company due to ongoing bans.

Huawei’s Chip Sources Under Scrutiny

Back in 2020, the US Government imposed a ban on Huawei, prohibiting the company from purchasing chips manufactured with American equipment due to national security concerns. This ban also extends to chipset-manufacturing equipment, severely limiting Huawei’s ability to source chips for its devices.

While Huawei has claimed that its new chips, including the Kirin 9000s and those used in its AI processor, are sourced from China’s Semiconductor Manufacturing International Corp (SMIC), there have been reports of discrepancies. Notably, the Kirin 9006C chip found in Huawei’s Qingyan L450 laptop is believed to have been manufactured by TSMC, raising questions about compliance with US restrictions.

TSMC Responds to the Investigation

In response to the ongoing probe, TSMC has issued an official statement emphasizing its commitment to compliance. The company claims to be a law-abiding entity and assures that it will take prompt action to ensure compliance, including conducting investigations and maintaining open communication with relevant parties.

This investigation highlights the ongoing tensions between the US and China in the tech sector, with Huawei being at the center of many disputes. As the probe unfolds, it remains to be seen what impact it will have on TSMC, Huawei, and the global semiconductor industry.

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