US Could Fine TSMC $1 Billion for Possible Export Violations, Report Says
Taiwan Semiconductor Manufacturing Company may face a fine of up to $1 billion or more if the Commerce Department determines it violated U.S. export control laws against Huawei, Reuters reported April 8. The Bureau of Industry and Security has reportedly been investigating the chip company after one of its chips was found in a Huawei product (see 2411120011 and 2410230019), and Reuters said Commerce could reach a $1 billion penalty because export control regulations allow the agency to issue a fine of up to twice the value of transactions that violate the rules. Reuters said it "could not determine how the Trump administration will proceed with TSMC or when the matter would be resolved."
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A BIS spokesperson didn't respond to a request for comment.
The report comes after both Commerce Secretary Howard Lutnick (see 2503180041) and BIS Undersecretary Jeffrey Kessler (see 2503280039) said they want to significantly increase penalties against companies that violate export controls against China. BIS imposed a record $300 million penalty against Seagate Technology in 2023 for violating controls against Huawei (see 2304190071).