The US is preparing to impose a fine of over $1 billion on Taiwan-based TSMC. The reason given is that it indirectly supplied chips to Huawei, a Chinese company blacklisted by the US.
The US may impose a $1 billion fine on TSMC
The US Department of Commerce found that a special chip used in the Ascend 910 series artificial intelligence processors was manufactured and shipped by TSMC to a Chinese company called Sophgo, and that these chips actually reached Huawei.
This supply chain, which took place in 2023, initially seemed like a normal trade activity. However, upon further investigation, it was revealed that the company called Sophgo was connected to the Chinese Bitmain and that a large number of advanced artificial intelligence processors were sent to Huawei through this company.
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The investigations found that these chips were manufactured using US equipment and therefore violated US export controls. TSMC severed all ties with Sophgo following the incidents.
According to TSMC’s defense, once a chip design reaches them, it is technically impossible to determine who developed it or what it will be used for.
The US Department of Commerce has not yet initiated formal criminal proceedings. However, it is stated that the company has been notified of the situation and that a 30-day defense period is on the agenda. Seagate, which previously committed a similar violation, was fined $300 million for supplying $1.1 billion worth of hard drives to Huawei.
It is eagerly awaited what decision will be made at the end of the criminal process against TSMC. So what do you think about this issue? You can share your views with us in the comments section below.
