The U.S. Department of Commerce has reportedly launched an inquiry into whether Taiwan Semiconductor Manufacturing Company (TSMC) has contravened U.S. export regulations by manufacturing chips for the sanctioned tech firm, Huawei Technologies.
The probe is primarily focusing on the Kirin 9000s chips found in Huawei’s Mate60 smartphones, launched in late August 2023. The main question is whether these chips were shipped after the 2020 deadline, which marked the cessation of shipments to Huawei.
The investigation will also delve into the possibility of TSMC manufacturing Huawei’s Ascend processors. TSMC, recognized as the world’s leading chip contract manufacturer, responded stating it is a “law-abiding company” and is committed to adhering to all legal and regulatory requirements, including U.S. export controls.
The company stated, “If we suspect any potential issues, we will act immediately to ensure compliance, which includes conducting investigations and proactively communicating with relevant parties such as customers and regulatory authorities.”
Despite the news of the investigation, TSMC’s shares seemed unaffected. Following the announcement of the company’s better-than-expected third-quarter earnings, shares increased by 4.83% to TW$1,085 on Friday.
According to a Chinese technology columnist, TSMC, a major player in the chip-making sector, will no longer manufacture chips for Chinese tech giant Huawei. The columnist stated, “It is likely that some of the 5G and Ascend chips currently used by Huawei were produced by TSMC. Once Huawei depletes these chips, domestic production will be their only option.”
The U.S. Commerce Department and Amkor Technology signed a non-binding preliminary memorandum of terms stating that the government will provide Amkor with up to US$400 million in proposed direct funding under the CHIPS and Science Act.
TSMC and Amkor have signed a memorandum of understanding to collaborate on advancing packaging and testing capabilities in Arizona. This collaboration is expected to enhance the entire chip manufacturing process in the U.S.
In other developments, TSMC is constructing two advanced fabs in Arizona. The first is set to begin operations in the first half of next year, manufacturing 4 nanometer chips. The second fab will start producing 2nm and 3nm chips in 2028.
Amkor, the world’s second-largest outsourced semiconductor assembly and test company by revenue, counts among its major clients tech giant Apple and automakers such as Siemens.
In May 2019, the U.S. Commerce Department placed Huawei and 70 of its affiliates on its Entity List due to national security concerns. This led to TSMC halting the production of Kirin chips in September 2020. The current probe by the Commerce Department aims to verify if any of the Kirin 9000 chips in the so-called “last shipment” were delivered post the September 15, 2020 deadline.
