The U.S. Commerce Department has launched an investigation into Taiwan Semiconductor Manufacturing Company Limited (TSMC) over suspicions that the company is making smartphone or artificial intelligence chips for China’s Huawei, potentially violating export regulations.
Since 2020, the U.S. has blacklisted Huawei and other Chinese companies from purchasing or producing chips using American equipment or technology without approval. These restrictions also block access to advanced AI chips, preventing companies like NVIDIA Corporation from selling cutting-edge AI technology to China.
In response to the allegations, TSMC stated in a mailed response that it is a “law-abiding company.” Huawei, meanwhile, has claimed that all its advanced chips are sourced from China’s Semiconductor Manufacturing International Corp, the country’s largest chipmaker.
