New Escalation in Semiconductor Battle: American Investigation into TSMC and Huawei Relationship.
Reports indicate that the U.S. Department of Commerce has opened an extensive investigation into the extent to which Taiwan Semiconductor Manufacturing Company (TSMC) complies with U.S. export rules, in light of allegations of supplying electronic chips to Huawei, which is subject to strict sanctions by the United States.
According to “The Information” website, the U.S. Department of Commerce is seeking to verify whether TSMC was involved in supplying Huawei with advanced chips used in developing smartphones and artificial intelligence applications. The investigation is specifically focused on the Kirin 9000S chips found inside Huawei Mate 60 phones, which were released by the company in August 2023, coinciding with the visit of U.S. Commerce Secretary Gina Raimondo to China.
Investigators are trying to determine whether those chips were produced after the deadline imposed by the United States in 2020 to stop shipments to Huawei. The investigation also focuses on whether TSMC manufactured the Ascend processors for Huawei, which are used for training artificial intelligence systems within data centers.
For its part, TSMC, one of the world’s largest semiconductor manufacturing companies, has affirmed its full commitment to applicable laws and regulations, including U.S. export controls. The company added that it will take “immediate action” in case of any suspected violations, through investigation and communication with relevant parties, including customers and regulatory authorities.
This investigation comes as TSMC recently announced higher-than-expected profits for the third quarter of the year, with its shares rising by over 80% so far in 2023, benefiting from the increased demand for artificial intelligence technologies.
This development represents a new escalation in tensions between the United States and China over semiconductor technology, and could have significant implications for the global technology sector amidst the ongoing economic war between the two countries.
