Taiwan Semiconductor Manufacturing Company (TSMC) has informed the US government about a potential attempt to manufacture chips for China's Huawei, possibly bypassing export controls.

Alleged TSMC Violations

The US Department of Commerce is currently investigating whether TSMC has violated export controls by making chips for AI or smartphones for Huawei. TSMC recently alerted the Commerce Department when a client ordered a chip similar to Huawei’s Ascend 910B, which might be subject to existing sanctions.

TSMC's Response and Actions

In an official statement, TSMC assured that it would abide by all rules and regulations, including export controls. The company halted shipments to Huawei in mid-September 2020. TSMC and the Commerce Department have been in communication regarding the recent order, and it's noted that TSMC will not be subjected to an investigation.

Implications for TSMC

If the investigation concludes that TSMC violated sanctions, the company could face severe consequences, potentially affecting its ability to manufacture chips for current clients, including Apple. A Commerce Department spokesperson noted awareness of potential export control violations but did not confirm any ongoing investigation.

The situation with TSMC underscores the importance of compliance with export controls and the potential consequences for companies involved in high-tech chip manufacturing.