Key Takeaways
1. Huawei has faced challenges with TSMC since being cut off, specifically regarding the Ascend 910B chip.
2. TSMC may face fines up to $1 billion for allegedly violating export control regulations.
3. TSMC previously informed the US Commerce Department about Huawei’s failed purchase attempts.
4. The US Commerce Department has not publicly commented on the situation, and TSMC claims compliance.
5. The outcome for TSMC remains uncertain, especially considering the US’s reliance on its chip manufacturing.
It has been some time since Huawei was cut off from TSMC, with the Kirin 9000 being the last chip produced on TSMC’s 5 nm technology. Recently, Huawei faced difficulties when attempting to utilize TSMC nodes for its Ascend 910B chip. TSMC and Technsights discovered a chip resembling Huawei’s too closely and swiftly put a stop to it. Nonetheless, this might not be the end of the issue, as a new report suggests that the chip manufacturer could be facing significant fines.
Potential Fines for TSMC
Sources who wish to remain anonymous have informed Reuters that TSMC could be penalized up to $1 billion for reportedly breaching export control regulations. This situation seems questionable since TSMC had previously notified the US Commerce Department about Huawei’s unsuccessful attempt to make a purchase. However, there might be more details in this case that haven’t yet come to light. The Commerce Department has not issued any public statements regarding this matter, and TSMC claims it has maintained compliance throughout.
TSMC’s Future in Question
Considering the confusing timeline surrounding these events, it is quite possible that TSMC will manage to avoid penalties, particularly during these challenging times when the US relies on TSMC’s chip manufacturing capabilities to maintain an edge over China. Still, there might be some truth to the claims, especially since Chinese companies have increasingly turned to offshore or proxy firms to obtain materials that are otherwise restricted, like how DeepSeek recently acquired advanced Nvidia chips for AI development.
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