[News] The US investigates TSMC, investigating whether it manufactured AI chips and smartphone chips for Huawei

TSMC, which posted record profits in the third quarter and is poised for healthy growth over the next five years, may now face new and unexpected challenges. The US Department of Commerce is reportedly investigating whether the foundry giant made smartphones and AI chips. According to The Information, Huawei.

Sources cited in the report said the investigation was still in its early stages. It is unclear how long it will take the ministry to gather enough information to reach a conclusion.

According to The Information, if the U.S. Department of Commerce determines that TSMC violated export controls in its dealings with Huawei, TSMC could be subject to fines or more severe penalties, such as temporary restrictions on access to U.S. technology. There is a possibility that they will face.

The report said the ongoing investigation is looking into whether TSMC was involved in the production of AI chips designed by Huawei. These AI server chips are gaining popularity among Chinese customers as an alternative to NVIDIA chips, which are prohibited from being purchased due to U.S. export regulations.

The investigation is also said to be looking into whether TSMC also manufactured smartphone chips for Huawei’s devices. The information points out that Huawei’s Mate 60 series, which is equipped with processors made by China’s SMIC, is a potential target of investigation.

In 2020, the U.S. Department of Commerce significantly expanded Huawei’s blacklisting in an effort to limit Huawei’s access to overseas semiconductor chip sales, banning chips made with U.S. technology due to national security concerns. Purchase prohibited.

The Information, citing sources with direct knowledge of the matter, noted that the ministry recently contacted TSMC to inquire about indirect sales to Huawei that may have been made through intermediaries under different names. are. Meanwhile, TSMC is reportedly investigating whether it conducted proper due diligence, including customer awareness checks, before processing orders.

The investigation will certainly be politically sensitive, the report notes, as TSMC is globally important as a major supplier to US-based technology giants such as Apple and NVIDIA. .

Notably, the Biden administration plans to provide TSMC with a $6.6 billion subsidy to support the company’s efforts to build a third factory in Arizona, USA, increasing total investment to $65 billion. It means to do it.

TSMC Arizona’s first fab is scheduled to begin production leveraging 4nm technology in the first half of 2025. Its second fab will produce a 2nm process using next-generation nanosheet transistors, in addition to the previously announced 3nm technology, and will begin production in 2028. According to TSMC, the company will produce chips using an advanced process of 2nm or higher.

In response, TSMC said on Friday that it is a law-abiding company and strives to comply with laws and regulations, including export controls, according to Reuters.

“If we have any reason to believe there is a potential issue, we will conduct an investigation and proactively communicate with customers and stakeholders, including regulators, as appropriate,” according to an emailed statement cited by TSMC. “We will take immediate steps to ensure compliance, including taking steps to ensure compliance.” Reuters.

Citing a previous report from AnandTech, The Information points out that TSMC confirmed that it had stopped processing new orders from Huawei in May 2020.

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(Photo provided by: TSMC)