TSMC May Face $1 Billion Fine Over Huawei-Linked Chip, U.S. Probe Reveals

Last Updated Apr - 09 - 2025, 03:02 PM | Source : Fela News

TSMC is under U.S. investigation for allegedly producing chips that ended up in Huawei's AI processor via Chinese firm Sophgo. A fine over $1 billion is possibl

Taiwan Semiconductor Manufacturing Co (TSMC) may face a fine exceeding US$1 billion as part of a U.S. export control investigation linked to a chip it produced that ended up in Huawei's Ascend 910B AI processor, sources revealed. The U.S. Commerce Department is reportedly probing TSMC’s manufacturing for Sophgo, a Chinese chip design firm whose chip design matched one used by Huawei—an entity under U.S. trade restrictions.

TSMC produced nearly 3 million chips matching Sophgo’s design, which likely reached Huawei, said RAND researcher Lennart Heim. Under U.S. export control laws, penalties can be up to twice the value of the violating transactions.

As TSMC’s tools include U.S. technology, its Taiwanese facilities fall under U.S. jurisdiction, barring chipmaking for Huawei or specific Chinese customers without a license. Heim noted that TSMC should not have produced chips with potential diversion risks to Huawei.

TSMC insists it stopped supplying Huawei in 2020 and is cooperating with authorities. Taiwan’s Economic Affairs Minister J.W. Kuo stated that no formal notification of penalties has been received. And no public enforcement action has been taken yet.