The U.S. Commerce Division has reportedly launched an investigation into Taiwan Semiconductor Manufacturing Firm Co. Ltd. TSM that would probably disrupt the manufacturing of chips for Apple Inc.’s AAPL iPhones and Macs.
What Occurred: The U.S. Commerce Division is probing whether or not TSMC violated sanctions by supplying chips to Huawei Applied sciences, reported Apple Insider (by way of The Data).
The investigation, initiated in early fall, follows suspicions that TSMC could have been contracted by an middleman agency to fabricate smartphone and AI chips for Huawei.
The 2020 sanctions on Huawei restricted the Chinese language tech big from acquiring parts from U.S. firms with out approval from the Commerce Division.
It additionally prohibited using chips manufactured with U.S.-sourced tools.
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If discovered responsible, TSMC may face penalties, together with sanctions, which may straight have an effect on its chip manufacturing for shoppers, together with Apple, the report famous.
Such a penalty may cease TSMC’s entry to U.S. know-how and tools, disrupting the manufacturing of latest strains and upkeep of current ones.
This might additionally restrict the manufacturing of Apple’s cellular chips, forcing the tech big to hunt one other chip accomplice.
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Why It Issues: Earlier this week, it was reported that TSMC may resist worth hikes from tools provider ASML Holding, which can result in a pricing standoff between the 2 firms.
Hsinchu, Taiwan-based TSMC reported third-quarter income of NT$759.69 billion ($23.50 billion), up 39% from final yr and 12.8% from the earlier quarter. In U.S. greenback phrases, income grew 36% year-over-year and 12.9% quarter-over-quarter.
The influence may very well be even better, as TSMC’s Arizona facility, which secured a $6.6 billion subsidy by the Chips Act from the Commerce Division in April, may face a halt in its growth.
Beforehand, it was additionally reported that TSMC has began manufacturing A16 chips for Apple at its Phoenix, Arizona facility, marking a return to utilizing U.S.-made chips after practically a decade.
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