The US Department of Commerce has launched an investigation to determine whether Taiwan's semiconductor giant, TSMC, has violated export control laws. Allegedly, TSMC violated US export regulations by manufacturing chips for the Chinese company Sophgo, which were then used in Huawei's Ascend 910B AI processor. As a result, the company may face a fine of $1 billion or more.
It is worth noting that Huawei has been blacklisted by the US for several years due to accusations of intellectual property theft and bypassing sanctions. Therefore, the company faces significant restrictions on purchasing products made with US technologies.
According to US export laws, products made with American technology can only be sold to specific countries and companies. Since much of the equipment used by TSMC contains US technologies, manufacturing for banned companies like Huawei at its Taiwan-based factories is prohibited.
Investigations have revealed that TSMC has produced around 3 million chips in recent years under Sophgo's order, and it is suspected that these chips were indirectly transferred to Huawei. Researcher Lennart Heim from the RAND Technology and Security Policy Center believes this possibility is strong.
These facts suggest that TSMC may have violated US export controls. The fact that the chips were designed for artificial intelligence applications raises further concerns. Typically, the US imposes fines equal to twice the value of the transaction for such violations, meaning TSMC could face fines exceeding $1 billion.
This situation is also significant in the context of US-Taiwan relations. Last week, Trump imposed a 32% tax on imports from Taiwan, prompting renewed trade negotiations between the two countries. Although this tax does not currently cover chips, Trump has issued an ultimatum to TSMC.
Speaking at a Republican National Committee event, Trump stated that if TSMC does not build a factory in the US, it will have to pay a 100% tax. He also criticized former President Joe Biden's $6.6 billion subsidy for TSMC's semiconductor plant in the US, stating, "Semiconductor companies don't need money."
