TSMC may face ₹8,600-crore fine over Chinese links: Report
Taiwan Semiconductor Manufacturing (TSMC), one of the world’s largest chipmakers, may face a massive fine of over $1 billion (approximately ₹8,630 crore) to settle a US probe that found Chinese links in a chip it manufactured, according to a recent report by Reuters.
The US Commerce Department had investigated TSMC’s work and discovered that one of its chips was used in a Huawei AI processor. China’s Huawei is currently restricted from receiving goods made with US technology, making this discovery a significant concern for the tech industry.
TSMC is a crucial player in the global semiconductor industry, providing chips to major tech companies such as Apple, Qualcomm, and Amazon. The company has been under scrutiny in recent years due to its close ties with China, its largest market.
The US probe was launched after it was discovered that TSMC had manufactured a chip for Huawei’s AI processor, which is a critical component in the company’s high-end smartphones. The chip was found to contain US-origin technology, which is restricted from being exported to China due to US sanctions.
TSMC has been accused of violating US export control laws by providing technology to Huawei without obtaining the necessary licenses. The company has denied any wrongdoing and has claimed that it was unaware of the chip’s intended use.
However, the US Commerce Department has found evidence that suggests TSMC had knowledge of the chip’s intended use. According to sources familiar with the matter, TSMC had been warned by the US government about the restrictions on exporting technology to Huawei.
The fine imposed on TSMC is expected to be significant, with sources suggesting that it could be as high as $1 billion. This would be one of the largest fines ever imposed on a tech company for violating US export control laws.
The implications of this fine are far-reaching and could have significant consequences for TSMC’s business. The company could face significant reputational damage and may struggle to regain the trust of its customers. Additionally, the fine could also impact TSMC’s bottom line, potentially leading to a decline in its stock price.
TSMC’s ties with China have been a subject of concern for the US government in recent years. The company has been seen as a key player in China’s efforts to build a domestic semiconductor industry, which has raised concerns about national security.
The US-China trade war has also played a significant role in the ongoing tensions between TSMC and the US government. The trade war has led to increased scrutiny of Chinese companies, including Huawei, and has resulted in the imposition of stricter export controls on technology.
In conclusion, TSMC’s potential fine of over $1 billion is a significant development in the ongoing saga of US-China tech tensions. The fine is a warning to other tech companies that may be tempted to violate US export control laws in order to do business with Chinese companies.
As the tech industry continues to evolve, it is essential that companies like TSMC are held accountable for their actions. The US government must continue to take a tough stance on companies that violate export control laws, and companies must be aware of the risks and consequences of doing business with Chinese companies.
