Minister of Economic Affairs J.W. Kuo (郭智輝) yesterday defended Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), saying the world’s largest contract chipmaker abides by the law after a report claimed TSMC could face a large fine following an export control investigation by the US Department of Commerce (DOC).
Speaking with reporters on the sidelines of a meeting at the legislature’s Economics Committee, Kuo said as a multinational company, TSMC observes the law in every county it operates, while the ministry has not yet received any information about the possible fine.
Kuo’s comments came after a Reuters report said earlier in the day that TSMC could face a fine of US$1 billion or higher when it aims to settle with the DOC after a recent probe in which a chip made by the Taiwanese company was found in the high-end Ascend 910B artificial intelligence (AI) processor produced by Chinese telecom giant Huawei Technologies Co (華為).
Photo: Liao Chen-hui, Taipei Times
Huawei was placed on a trade restriction list by Washington in 2019 for “national security reasons.”
Citing two unnamed sources close to the matter, the report said the potential penalty of US$1 billion or more comes from export control regulations that allow for a fine of up to twice the value of any transaction that violates the sanction rules.
In the report, Lennart Heim, a researcher at US-based RAND’s Technology and Security and Policy Center, said TSMC in recent years rolled out almost 3 million chips which matched the design ordered by Chinese IC designer Sophgo Technologies Ltd (算能科技) and likely ended up with Huawei.
Heim, who tracks AI development in China, said in the report that based on the design, which is for AI applications, TSMC should not have made the chip for a company headquartered in China, especially given the risk that it could be diverted to a restricted entity like Huawei.
TSMC did not respond to questions about the Reuters report.
In October 2023, TSMC notified the US DOC that one of its chips was found by Techinsights in a Huawei product, in a possible violation of US export restrictions.
At the time, TSMC said it was committed to complying with all applicable rules and regulations, including export controls, and as such has not supplied Huawei since mid-September 2020.
Meanwhile, Reuters also reported that US President Donald Trump said at a Republican National Congressional Committee event on Tuesday that he told TSMC it would pay a tax of up to 100 percent if it didn’t build its plants in the US.
Last month, TSMC pledged to invest an additional US$100 billion in Arizona over the next few years to build three more advanced wafer fabs, two IC assembly plant and one research and development center, on top of a US$65 billion investment it has already planned for building three fabs in Arizona.
Kuo said yesterday that he has faith TSMC will fulfill its investment commitment.
The minister also responded to a lawmaker’s question about GlobalFoundries Inc exploring a potential merger with United Microelectronics Corp (聯電) to create a more resilient maker of mature chips in the US, saying he believed it would not happen.
Additional reporting by Meryl Kao
The Eurovision Song Contest has seen a surge in punter interest at the bookmakers, becoming a major betting event, experts said ahead of last night’s giant glamfest in Basel. “Eurovision has quietly become one of the biggest betting events of the year,” said Tomi Huttunen, senior manager of the Online Computer Finland (OCS) betting and casino platform. Betting sites have long been used to gauge which way voters might be leaning ahead of the world’s biggest televised live music event. However, bookmakers highlight a huge increase in engagement in recent years — and this year in particular. “We’ve already passed 2023’s total activity and
BIG BUCKS: Chairman Wei is expected to receive NT$34.12 million on a proposed NT$5 cash dividend plan, while the National Development Fund would get NT$8.27 billion Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, yesterday announced that its board of directors approved US$15.25 billion in capital appropriations for long-term expansion to meet growing demand. The funds are to be used for installing advanced technology and packaging capacity, expanding mature and specialty technology, and constructing fabs with facility systems, TSMC said in a statement. The board also approved a proposal to distribute a NT$5 cash dividend per share, based on first-quarter earnings per share of NT$13.94, it said. That surpasses the NT$4.50 dividend for the fourth quarter of last year. TSMC has said that while it is eager
‘IMMENSE SWAY’: The top 50 companies, based on market cap, shape everything from technology to consumer trends, advisory firm Visual Capitalist said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) was ranked the 10th-most valuable company globally this year, market information advisory firm Visual Capitalist said. TSMC sat on a market cap of about US$915 billion as of Monday last week, making it the 10th-most valuable company in the world and No. 1 in Asia, the publisher said in its “50 Most Valuable Companies in the World” list. Visual Capitalist described TSMC as the world’s largest dedicated semiconductor foundry operator that rolls out chips for major tech names such as US consumer electronics brand Apple Inc, and artificial intelligence (AI) chip designers Nvidia Corp and Advanced
Pegatron Corp (和碩), an iPhone assembler for Apple Inc, is to spend NT$5.64 billion (US$186.82 million) to acquire HTC Corp’s (宏達電) factories in Taoyuan and invest NT$578.57 million in its India subsidiary to expand manufacturing capacity, after its board approved the plans on Wednesday. The Taoyuan factories would expand production of consumer electronics, and communication and computing devices, while the India investment would boost production of communications devices and possibly automotive electronics later, a Pegatron official told the Taipei Times by telephone yesterday. Pegatron expects to complete the Taoyuan factory transaction in the third quarter, said the official, who declined to be