TSMC could face a $1B fine over a chip used in Huawei’s AI processor.
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TSMC Faces $1B Fine Over Huawei AI Chip Incident
Taiwan Semiconductor Manufacturing Company (TSMC) is facing a potential $1 billion fine due to its involvement in a U.S. export control investigation related to a chip used in Huawei’s AI processor. This investigation brings up crucial questions about the intersection of global supply chains, export controls, and the race for cutting-edge AI technologies. Here's everything you need to know about this development and its broader implications. Image:Google In late 2024, the story broke that a significant quantity of TSMC-made chips, which were under U.S. export restrictions, had ended up in Huawei's Ascend 910B AI processor. These chips, initially manufactured for AI applications, were reportedly used in a multi-chip setup, with one of the chips built by a Chinese company, Sophgo Technologies. The complex web of manufacturing raised alarms about potential violations of U.S. export controls. The Role of TSMC: A Major Player in Global Semiconductor Supply Chains TSMC is the world’s la…