TSMC has notified the US about a potential semiconductor deal with China, claiming that the Taiwan giant isn't the subject of investigation for now.
TSMC Reveals That The Huawei Order From China Came In Before The US Sanctions, Hence The Firm Is "All Clean" In Legal Terms
A new fiasco has evolved in the semiconductor industry, where the famous research firm TechInsights has reportedly torn down one of Huawei's Ascend 910B AI chips, only to find out that it utilizes TSMC's semiconductor, which became a matter of huge concern given that TSMC was being pointed out in violation of the US export restrictions. However, a new report by Reuters claims that TSMC had already notified the US Department of Commerce about Huawei's use of its chips and that the Taiwan giant isn't under scrutiny for now.
We proactively communicated with the US commerce department regarding the matter in the report. We are not aware of TSMC being the subject of any investigation at this time.
TSMC is a law-abiding company and we are committed to complying with all applicable rules and regulations, including applicable export controls. In compliance with the regulatory requirements, TSMC has not supplied to Huawei since mid-September 2020
- TSMC via The Financial Times
Interestingly, just last week, the US Department of Commerce initiated an investigation into whether TSMC was involved in a potential violation of US export controls, so the Huawei plot came at a somewhat surprising time. Diving a bit into details, the Financial Times claims that TSMC notified US authorities when a customer placed orders for a chip resembling Huawei's Ascend 910B and that the firm went to complete the orders since the US sanctions weren't effective then. So indirectly, TSMC won't be under the influence of the investigation; rather, the customer who placed the order will face the scrutiny process.
Well, the story is indeed interesting, and here is where we add our touch. China is a market that companies simply cannot ignore, given that the rapid development rates are prompting big tech firms to collaborate with Chinese companies through legal means or other methods that might be deemed illegal. TSMC is a key rooter for the US, there is no doubt about that, but China did play a massive role in the company's finance pre-US sanctions, and if you look at the situation now, TSMC is barred away from doing business with China.
On the other end, well the report does show that China is far away from developing capable semiconductors, and while industry news does show that the nation is evolving rapidly, it still is far away from reaching the technology level provided by the likes of TSMC; hence the balance of the scale is heavily tipping away from China, at least for now.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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