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TSMC Denies US Investigation into Chip Dealings with Huawei Amid Export Control Concerns

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A woman walks past a Taiwan Semiconductor Manufacturing Company (TSMC) logo at the Hsinchu Science Park in Hsinchu on July 5, 2023. SAM YEH/AFP via Getty Images

Taiwan Semiconductor Manufacturing Company (TSMC) has firmly denied allegations regarding an ongoing investigation by the US government concerning its relationship with Huawei, a prominent Chinese technology firm.

This denial comes in response to recent reports indicating that TSMC chips were identified in products manufactured by Huawei, raising concerns over possible violations of US export regulations.

TSMC Denies US Investigation Allegations

In a statement released to the media, TSMC emphasized its commitment to adhering to all legal standards and export controls, reinforcing that it has not been notified of any investigations related to the company.

Reports emerged suggesting that the US Commerce Department is examining whether TSMC has been involved in producing chips for Huawei, which could breach US laws aimed at restricting technology transfers to China.

The relationship between TSMC and Huawei has been under scrutiny since Huawei was placed on a US trade blacklist in May 2019, primarily due to national security concerns. TSMC halted its chip supplies to Huawei in September 2020, aligning with the US government's efforts to limit Huawei's access to advanced technology, as per Reuters.

TSMC Chip Found in Huawei Device Sparks US Concerns

Recent findings revealed that a TSMC chip was discovered in a Huawei device, leading TSMC to inform US officials about the situation. A technology research firm, TechInsights, reportedly disassembled a Huawei product and identified the TSMC chip within it.

However, TechInsights has yet to release a formal report detailing its findings or respond to inquiries regarding the matter. The discovery has brought attention back to Huawei, particularly following the launch of a new smartphone featuring a 5G chip, said CNBC.

his development is concerning for US officials, who have been working to restrict Huawei's access to advanced semiconductor technology. In light of the situation, a TSMC official referred to the chip discovery as a significant event, indicating that the company has communicated the details to both the US and Taiwanese governments.

The US has implemented strict export controls aimed at preventing Chinese companies from obtaining advanced technology, especially in light of the military implications associated with these technologies. The Taiwanese government is similarly cautious, as ongoing tensions with China have led to increased scrutiny of technology transfers.

Despite these restrictions, reports indicate that some Chinese companies are attempting to navigate around US export controls by utilizing cloud services from providers like Amazon to gain access to advanced chips.

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