# US Commerce Department Probes TSMC for Possible Violation of Sanctions Against Huawei
The US Commerce Department has launched an investigation into Taiwan Semiconductor Manufacturing Company (TSMC), a major chip provider for Apple, to ascertain if the firm breached US sanctions by delivering advanced chips to the Chinese tech leader Huawei. This probe arises amid Huawei’s recent comeback in the smartphone sector, particularly with the release of its Mate 60, which boasts 5G technology—a feature many thought was unattainable for Chinese manufacturers due to ongoing sanctions.
## Background: The iPhone and Huawei Competition
Traditionally, Huawei’s smartphones posed strong competition to Apple’s iPhones, not only within China but on a global scale. However, this rivalry faced significant setbacks after the US government implemented stringent sanctions against China, which included barring American firms from exporting cutting-edge technologies, such as 5G chips, to Chinese companies. The sanctions greatly hampered Huawei’s ability to create high-end smartphones, as 5G technology became essential in contemporary devices.
In 2023, Huawei astonished the tech industry by introducing the Mate 60, equipped with 5G capabilities. This surprising advancement prompted speculation regarding possible violations of US sanctions, leading to the current inquiry into TSMC’s practices.
## TSMC’s Alleged Violation of Sanctions
Reports suggest that TSMC is under suspicion for providing 5G and AI chips to Huawei, potentially using US-manufactured equipment in the process. Sources familiar with the situation indicate that the investigation is examining whether TSMC performed sufficient due diligence to confirm the end-users of its products, particularly if orders were routed through intermediary firms.
The US Commerce Department’s probe is vital, as it will evaluate whether TSMC’s actions represented a violation of export regulations. If deemed culpable, TSMC might face severe consequences, including fines or restrictions on its access to US technology, which could have significant repercussions for its operations and its relationship with Apple.
## Potential Effects on Apple
The consequences of this investigation reach beyond TSMC and Huawei; they could also affect Apple. Should TSMC be found guilty of export violations, it may confront sanctions that impede its ability to produce chips for Apple. Since TSMC is Apple’s primary chip supplier, any disruption in its operations could influence the manufacturing of upcoming Apple products.
TSMC has publicly declared that it possesses compliance systems and is fully cooperating with the investigation. The company is also undertaking its own internal audit to assess whether its compliance checks were adequate.
## Conclusion
The inquiry into TSMC’s interactions with Huawei highlights the intricacies of international trade and technology in an era marked by heightened geopolitical tensions. As Huawei resurfaces in the smartphone market, the US government’s examination of TSMC’s conduct reflects wider concerns regarding national security and the reliability of supply chains.
While Apple is not directly involved in the investigation, the potential ramifications for TSMC could resonate throughout its supply chain, impacting the tech giant’s future product lines. As the situation unfolds, stakeholders will be vigilantly observing the investigation’s outcome and its effects on the tech industry as a whole.
