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TSMC could face $1 billion or more in fines to settle an investigation into a possible violation of U.S. export controls, Reuters reported Tuesday.
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The U.S. Department of Commerce is reportedly investigating TSMC’s work for Chinese firm Sophgo, after a chip found in a Huawei AI processor matched chips TSMC shipped to Sophgo.
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Huawei is barred from receiving products made with U.S. technology, which TSMC’s factories use, the report said.
Taiwan Semiconductor Manufacturing Company (TSM) could face $1 billion or more in fines to settle an investigation into a possible violation of U.S. export controls, Reuters reported Tuesday.
The U.S. Department of Commerce is reportedly investigating TSMC’s work for Chinese firm Sophgo, after a chip found in a Huawei AI processor matched chips TSMC shipped to Sophgo. Huawei is barred from receiving products made with U.S. technology, which TSMC’s factories use, the report said.
TSMC declined to remark on the report, and the Commerce Department did not immediately respond to a request for comment.
In October, TSMC suspended shipments to Sophgo, which denied any business relationship with Huawei at the time, according to a Reuters report.
Shares of TSMC slid about 4% in recent trading against a backdrop of broader market losses amid worries about new tariffs. They’ve lost more than one-quarter of their value since the start of the year.
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