Report claims US probing TSMC over secret Huawei deals — TSMC does not confirm or deny the allegation

A report from The Information surfaced recently, claiming that the U.S. Department of Commerce is reportedly asking Taiwan Semiconductor Manufacturing Company (TSMC) about possible dealings with Huawei on smartphone and A.I. chips and whether it’s conducting due diligence on its customers to prevent sanctioned companies from acquiring TSMC tech through intermediaries. TSMC does not confirm or deny the allegation. On the other hand, the U.S. Department of Commerce and Huawei haven’t commented on the issue yet.

“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 TSMC in a statement to Reuters.

Huawei was blacklisted by the U.S. government way back in 2020, fearing that the Chinese government was using the company to spy on American interests. After this development, TSMC stopped accepting new orders from the Chinese tech giant. Then, in 2022, the White House expanded its bans and sanctions on other Chinese tech companies, expanding the scope and breadth of its Chip War with China.

There’s no proof that TSMC is breaking the sanctions against Huawei except for that single unnamed source from The Information. TSMC is the current global leader in semiconductor manufacturing and is raking in billions of dollars in direct CHIPS Act funding and loans, so it wouldn’t make sense for the company to risk it all just to make a little extra from Huawei.

This story could be another geopolitical move, especially as the United States heads into the final weeks of a hotly contested presidential election. With TSMC a key player in America’s bid for technological supremacy, an unknown entity might be trying to drive a wedge between it and the U.S. Nevertheless, we will probably know more in the next few weeks or months about America’s probe into TSMC, if one even exists.

Alternatively, we could liken this story to the recent news in which a Chinese cybersecurity organization accuses Intel of poor security, unreliable products, and cyber espionage. While its claims might have some historical basis, most of the issues it raised have already been addressed or are entirely baseless, making it seem like it’s just trying to rattle the White House during a critical period in American politics.