Hello, tech enthusiasts! Today we’re diving into a fiery topic surrounding the Taiwan Semiconductor Manufacturing Company (TSMC) and a potential fine of $1 billion.

Reports suggest that TSMC might face hefty penalties due to a U.S. export control investigation. This involves a chip linked to Huawei’s AI processor, stirring up quite the controversy.

According to sources, TSMC remains tight-lipped during what they call a ‘quiet period.’ However, this situation dates back to late 2024, when TSMC’s dealings with Huawei and Chinese chip designer Xiamen Sophgo Technologies became a focal point.

Back then, an investigation revealed that significant amounts of TSMC’s controlled AI chip dies potentially found their way into Huawei’s popular Ascend 910B AI processor. The implications of this are immense, especially given the advanced nature of Huawei’s tech.

While TSMC insists on its commitment to compliance with export regulations, the fact remains that they have not supplied anything to Huawei since September 2020—and they take these matters seriously.

As we break down the timeline, it’s intriguing to see how the U.S. Department of Commerce has impacted TSMC’s operations and collaborations with Chinese firms over the past few months.

Stay tuned as we continue to monitor this evolving story, especially to see if TSMC’s actions lead to a precedent in tech regulations and international trade.