The United States Department of Commerce is now investigating the Taiwan Semiconductor Manufacturing Co. (TSMC) for allegedly helping Huawei develop its latest smartphone and AI chipsets. Sources claimed that the latest advancements that ramped up Huawei's development of its Chinese technology are believed to have received assistance from the likes of TSMC.
It was revealed that there are suspicions that TSMC skirted around the US 5G export controls which are placed against Chinese companies, and this includes Huawei which is prevented from accessing American technology.
US Probes TSMC for Sharing Tech with Huawei
The Information shared a recent report which claimed that the US Commerce Department is now investigating TSMC for their alleged involvement with Huawei, assisting the company and violating 5G export controls. It was revealed by anonymous sources that the US agency is now probing the said help given by TSMC to Huawei that allowed them to advance their technologies, in the wake of its latest devices.
The report from The Information regarded that TSMC possibly helped Huawei in manufacturing their much-needed smartphone chipsets, with the Taiwanese company best known for their partnerships with the likes of Apple. Additionally, sources claimed that TSMC also allegedly helped Huawei in designing its self-made AI chips.
Despite this report, Commerce declined to share any comments regarding the matter, while TSMC already released a statement (via Reuters) saying that it is a "law-abiding company" and that it followed all laws and regulations imposed by the country.
Recently, the United States passed several laws that heightened the restrictions against China for accessing American developments like smartphone chips and AI technologies amidst the ongoing tensions.
Huawei's Advancements in Chinese Tech
Recently, Huawei has seen a surge in its developments of advanced technologies like smartphone chips and artificial intelligence systems that are already rising in the Chinese market and other parts of the world. It is known that the United States believes that Huawei has ties to the Chinese government as a 'state-controlled entity,' preventing access to US 5G chips.
US vs. China in Tech and Huawei
The rivalry between the US and China in the world of tech is still here, and both are racing in different developments to get ahead of the other, it also saw the ban of using each's technologies for the other's advancement. Huawei is best known for being significantly affected by it, with the Trump administration starting the sanctions against them, and Biden's leadership also banned several companies from supplying the Chinese firm.
However, despite these massive restrictions against Chinese technologies, they are performing more than expected overseas, with China's homegrown developments seeing a surge and defeating international rivals in their country, especially US-made devices. Additionally, Huawei saw a significant rise earlier this year with its 10 percent revenue increase, earning $12 billion along the way.
It was suspected that Huawei still has access to American-made technologies despite the restrictions and sanctions, and these doubts now lead to a probe against possible entities helping the Chinese company. TSMC is suspected of its involvement with Huawei's recent rise that allowed it to develop sophisticated components, but the chip company is defending its side, claiming that it followed all the restrictions the US imposed.
