TSMC may face $1 billion fine in U.S. probe for supplying chips to Huawei
From Yahoo Finance: 2025-04-08 11:50:00
Taiwan Semiconductor Manufacturing faces a potential $1 billion penalty in a U.S. export control investigation involving chips supplied to Huawei. TSMC made nearly three million chips for a design company that matched Huawei’s high-end AI processor. The U.S. is investigating possible violations that could result in significant fines for TSMC.
The U.S. Department of Commerce is scrutinizing TSMC’s work for China-based Sophgo, which used chips that ended up in Huawei products. TSMC’s chipmaking equipment includes U.S. technology, making it subject to export controls. TSMC’s decision to supply chips to a company linked to Huawei could lead to severe penalties.
TSMC’s potential $1 billion-plus penalty stems from export control regulations that allow fines up to twice the value of violating transactions. The company’s decision to supply chips to Sophgo, which matched Huawei’s processor, could result in substantial financial consequences. The situation is a critical moment for U.S.-Taiwan relations amid ongoing trade negotiations.
TSMC’s involvement with Sophgo and Huawei has raised concerns about potential export violations and sanctions busting. The Trump administration is considering higher penalties for companies found in violation of export controls. TSMC’s cooperation with the Commerce Department and commitment to compliance will be crucial in resolving the matter.
The U.S. is focusing on increasing enforcement and imposing significant fines for export control violations, particularly concerning China-related cases. TSMC’s involvement with Sophgo and Huawei has prompted a closer look at potential violations. The situation highlights the importance of enforcing export control regulations to protect national security interests.
TSMC’s potential penalty for export control violations could reach a rare ten-figure sum, reflecting the severity of the situation. Previous cases involving significant fines for export control violations serve as a precedent for imposing substantial penalties. The outcome of the investigation will have implications for TSMC’s future operations and compliance with export regulations.
Read more at Yahoo Finance: Exclusive-TSMC could face $1 billion or more fine from US probe, sources say