TSMC in the US crosshairs: uncertain future for Apple chips

The US Department of Commerce is conducting an investigation into TSMCthe maker of chips for Apple devices, to see whether it violated US sanctions against China by supplying smartphone and artificial intelligence chips to Huawei.

The story originates from the ban imposed by the USA on American companies from exporting advanced technologies to China, which it had de facto prevented Huawei from competing in the premium smartphone market. However, Huawei launched the Mate 60 and Pura 70 Ultra (which you can find on Amazon), both with 5G support, raising some suspicions about possible sanctions violations.

As reported by The Information, TSMC is now suspected of supplying 5G and AI chips to Huawei using American made equipment. “The Commerce Department is investigating whether TSMC produced artificial intelligence chips or smartphones for Huawei in violation of U.S. export rules,” two sources with direct knowledge of the matter said.

The investigation aims to determine whether TSMC has carried out the necessary checks on the identity of the end user of the chips. If a violation is found, the company could face heavy penalties that could jeopardize its ability to produce future chips for Apple.

While Apple is not directly involvedmay suffer the consequences of any sanctions imposed on TSMC. The Commerce Department could impose a fine or more severe restrictions, such as temporarily limiting TSMC’s access to U.S. technologies.

TSMC said it has compliance systems in place and is cooperating fully with the investigationincluding conducting internal audits to determine whether its controls have failed.

The situation highlights the complexity of international trade relationships in the technology sector and the importance of complying with export regulations. It remains to be seen how the US government will balance national interests with the potential repercussions on key companies like Apple if TSMC is found responsible for violations.