Recent reports from American media indicate that the U.S. Department of Commerce is investigating TSMC (Taiwan Semiconductor Manufacturing Company) for potential violations related to the sale of AI chips to Huawei. According to The Information, a U.S. tech news outlet, two sources familiar with the matter revealed that the investigation centers on whether TSMC has been producing artificial intelligence or smartphone chips for Huawei, which could violate U.S. export regulations.

The sources noted that in recent weeks, the U.S. Department of Commerce contacted TSMC to inquire about the company’s involvement in producing smartphone or AI chips for Huawei.

One possibility under investigation is that Huawei may be using different company names to place orders, indirectly purchasing chips from TSMC through intermediaries. Consequently, the Department of Commerce is examining whether TSMC conducted the necessary due diligence, known as “know-your-customer,” when accepting these orders.

The Information also pointed out that if the Department of Commerce concludes that TSMC’s dealings with Huawei violate U.S. export regulations, it could impose fines or more stringent penalties, such as temporarily restricting TSMC’s access to U.S. technology.

Sources mentioned that this investigation into TSMC is still in its early stages, and it remains unclear how long it will take for the Commerce Department to gather information and reach a conclusion.

A spokesperson for the Department of Commerce declined to comment on the matter, and Huawei has not made any statements. TSMC, on the other hand, emphasized its commitment to complying with all applicable laws and regulations, including export controls, and stated that it would take appropriate measures if any potential issues arise.