Reasons why TSMC could face heavy fines.

TSMC is facing fines of over one billion USD after reports emerged that the company helped manufacture chips used in Huawei's high-end devices.

TSMC faces a potential fine of over one billion USD. Photo: Bloomberg .

The U.S. Commerce Department is investigating Taiwan Semiconductor Manufacturing Co (TSMC) over its alleged support for manufacturing chips for Huawei products.

The U.S. Commerce Department is investigating the relationship between TSMC and Sophgo, a China-based company. According to sources, components manufactured by TSMC for Sophgo have been identified as matching chips integrated into Huawei's high-end AI processor, the Ascend 910B. Huawei is currently on the U.S. restricted entity list due to allegations of violating sanctions and stealing trade secrets.

According to expert Lennart Heim from the RAND Center for Technology, Security and Policy (USA), TSMC has manufactured approximately 3 million chips based on Sophgo's design in recent years, and it is highly likely that some of them have reached Huawei.

TSMC's production of chips using American technology means that the company's factories located in Taiwan are also subject to Washington's export controls. This means TSMC is not allowed to manufacture chips for Chinese companies like Huawei without an export license from the US.

Mr. Heim argued that TSMC should not manufacture chips for a Chinese company, especially given the risk of these products being distributed to Huawei. The potential penalties could be double the value of the infringing transactions, according to current U.S. Department of Commerce regulations.

Following the unfavorable news, TSMC shares listed in the US edged lower after a nearly 3% gain in the previous trading session. Although semiconductors from Taiwan (China) have not yet been subject to tariffs, President Trump said his administration is considering expanding tariffs on the industry.

Earlier in March, TSMC announced plans to invest an additional $100 billion in the US, including building five more chip manufacturing facilities in the coming years.

Currently, the next course of action by the US government remains unclear. However, senior officials have indicated they are considering imposing harsher penalties for violations of export regulations.

Source: https://znews.vn/tsmc-sap-bi-trung-phat-post1544726.html