US investigates whether TSMC has really cut ties with Huawei

The United States Commerce Department has reportedly started an investigation into whether Taiwan Semiconductor Manufacturing Company (TSMC) has violated US export rules to make chips for the sanctioned Huawei Technologies.

The Commerce Department contacted TSMC to ask whether it is directly or indirectly supplying Huawei with smartphone and artificial intelligence (AI) chips, The Information reported on Friday.

A key focus of the investigation is the Kirin 9000S chips found inside Huawei’s Mate60 smartphones, which were launched in late August 2023 during US Commerce Secretary Gina Raimondo’s China trip. The question is whether these chips were made by TSMC, and whether they were shipped after a 2020 deadline for halting shipments to Huawei.

The investigation will also check whether TSMC is making Huawei’s Ascend processors.

TSMC, the world’s biggest chip contract manufacturer, said in a statement that it is a “law abiding company,” which is committed to complying with laws and regulations, as well as US export controls.

“If we have any reason to believe there are potential issues, we will take prompt action to ensure compliance, including conducting investigations and proactively communicating with relevant parties including customers and regulatory authorities as necessary,” said the company.

Shares of TSMC seemed to be unaffected by the report about the probe. They increased 4.83% to TW$1,085 (US$33.84) on Friday after the company announced forecast-beating third-quarter earnings. The shares have gained 83% so far this year.

The Information’s report came after a Chinese technology columnist published an article with the title “After TSMC and Huawei split up, Huawei will achieve self sufficiency” on October 9.

“A