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Fortune
Fortune
Lionel Lim

TSMC says it will take 'prompt action' to ensure compliance after reported U.S. probe into possible work with Huawei

(Credit: Qilai Shen—Bloomberg/Getty Images)

Taiwan Semiconductor Manufacturing Co., the world’s largest contract chipmaker, said it’s ready to “take prompt action to ensure compliance” after a report claimed the U.S. is probing whether the Taiwanese chipmaker is working with Chinese tech giant Huawei in spite of Washington’s sanctions.

On Thursday, The Information reported, citing unidentified sources, that the U.S. Commerce Department recently reached out to TSMC to ask whether it was working with Huawei on smartphone and AI chips. Officials may also be probing whether TSMC conducted required due diligence on orders to prevent Huawei from getting the chips indirectly through intermediary companies.

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