TSMC (TSM) could face up to $1 billion fine for US export regulation violation
The chipmaker's technology was found in Chinese company Huawei's AI processors, which would violate US export control sanctions.
Taiwan Semiconductor (TSMC) could be facing a major penalty from the United States government over export control regulation violations. TSMC’s chips were recently found to be in Chinese company Huawei’s AI processors. The USA has trade sanctions on Huawei, which has faced allegations of sanctions busting and trade secret theft that landed it on a US trade restriction list that forbids it from goods made with US technology. Under the violation, TSMC may face a fine of up to $1 billion.
TSMC’s US export violations fine was recently reported via Reuters, which spoke to anonymous sources familiar with the matter. Allegedly, TSMC made three million chips in the past few years for another Chinese firm known as Sophgo. Though investigation of both Sophgo and Huawei's processors, authorities reportedly discovered that chips in Huawei’s processors matched the chips designed for Sophgo. TSMC’s chips are also made with US technology, so ending up in Huawei’s products would put TSMC in violation of export control regulations that allow for a fine for up to twice the value of the transactions that broke the rules.
Source: Google
This penalization comes at a crucial time in global economic politics as countries around the world navigate responses to recent tariffs rolled out by Donald Trump’s administration. The Entertainment Software Association (ESA) warned of issues the tariffs would cause across the entire industry, and some companies have already made decisions in response to the tariffs. Nintendo delayed pre-orders of the Switch 2 in order to analyze the situation and Razer quietly removed options to pre-order and configure its latest laptops. Thankfully, a pause in the tariffs has allowed TSMC stock prices to recover in the afternoon hours.
With the nation of Taiwan among many other countries aiming to make deals with the US for reduced tariffs, it looks like TSMC is taking one on the chin in an already tumultuous time. For more updates on the tariffs, stay tuned here at Shacknews for further news.
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replyTJ Denzer posted a new article, TSMC (TSM) could face up to $1 billion fine for US export regulation violation
