TSMC might have to fork over $1 billion to the US for allegedly breaking export rules after one of its chips was found in a Huawei processor

(Image credit: An Rong Xu/Bloomberg via Getty Images)

TSMC, the world's biggest chip maker, could potentially be on the hook for $1 billion or more according to Reuters which cites "two people familiar with the matter… who requested anonymity because they were not authorized to speak publicly about the matter." And although $1 billion isn't make-or-break for TSMC, it's hardly chump change, either.

This fine will reportedly be in the form of a settlement the semiconductor giant will have to pay as a result of the US Department of Commerce's alleged investigation into whether it has broken export rules by making chips that end up in Chinese company Huawei's hands.

According to Reuters' sources, the $1+ billion fine "comes from export control regulations allowing for a fine of up to twice the value of transactions that violate the rules."

According to TSMC's Nina Kao, the company hasn't given Huawei anything since 2020. The $1+ billion fine could apparently be in the form of a "charging letter" that would give the company time to respond—so even if the sources are correct, it looks like it might not be a done deal just yet.

Speaking more broadly, now, although TSMC might have recently announced $100 billion worth of investments in the US, this doesn't put it beyond the reach of export restrictions. And Trump's recent strong-arm diplomacy certainly shouldn't give TSMC any ideas otherwise.

We'll have to wait for official word from the US Commerce Department or TSMC to say anything for certain.

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Jacob got his hands on a gaming PC for the first time when he was about 12 years old. He swiftly realised the local PC repair store had ripped him off with his build and vowed never to let another soul build his rig again. With this vow, Jacob the hardware junkie was born. Since then, Jacob's led a double-life as part-hardware geek, part-philosophy nerd, first working as a Hardware Writer for PCGamesN in 2020, then working towards a PhD in Philosophy for a few years while freelancing on the side for sites such as TechRadar, Pocket-lint, and yours truly, PC Gamer. Eventually, he gave up the ruthless mercenary life to join the world's #1 PC Gaming site full-time. It's definitely not an ego thing, he assures us.

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