The US is apparently suspicious of TSMC’s cooperation with Huawei

The US Commerce Department has investigated Taiwan Semiconductor Manufacturing Corp. (TSMC) over controversial allegations that, if true, could result in hefty fines. According to this unproven hypothesis, TSMC may have bypassed export controls to make advanced AI chips or Huawei smartphone chips and helped the Chinese giant.

According to The Information, the US Department of Commerce believes that TSMC may have violated the sanctions imposed on Huawei. The Commerce Department has yet to formally announce the investigation, but TSMC immediately released a statement calling itself a “law-abiding company” that is “committed to complying with laws and regulations, including export controls.”

In the last four years, the United States has considered Huawei a national security threat; Because it is said that this company provides financial services to some anti-American countries and violates the export controls of the United States. After that, the tensions between the United States and China have intensified; So much so that the US has increased tariffs to limit China’s access to US technologies and recently increased tariffs on semiconductors. As the competition for dominance in artificial intelligence has intensified, the US Congress has recently introduced a bill to prevent China and other foreign adversaries from accessing artificial intelligence technologies.

Why the US is worried about Huawei and suspicious of TSMC

U.S. officials have long viewed Huawei as a Chinese state-controlled entity, blocking the company’s access to U.S.-made 5G chips essential for artificial intelligence applications. But when Huawei launched the Mate 60 smartphone with 5G chips, it caused American concern. As 9to5Mac puts it: “No one can understand how Chinese tech companies can produce such products when they are under sanctions and do not have the technology to make the chips.”

In addition to the possible production of chips for Huawei phones, the United States suspects that TSMC helped the famous Chinese giant design artificial intelligence chips, sources told The Information.

TSMC’s statement said there was no sign yet of a breach of export controls, but the US had apparently contacted TSMC to ask if it was involved in making smartphone chips or AI chips for Huawei.