TSMC(US:TSM) Guan Cha Zhe Wang·2025-04-09 07:13Core Viewpoint - TSMC is under investigation by the U.S. for allegedly supplying chips to mainland Chinese companies, potentially facing fines of $1 billion or more due to violations of U.S. export control regulations [1][2]. Group 1: Investigation and Potential Fines - TSMC may face fines up to $1 billion (approximately 73.5 billion RMB) for allegedly violating U.S. export control laws by supplying chips to mainland Chinese companies [1]. - The fines could be as high as double the transaction amount, as TSMC's chip manufacturing equipment contains U.S. technology, and its factories in Taiwan are subject to U.S. export controls [1][2]. - U.S. officials are seeking to impose stricter penalties for export violations, with the Deputy Secretary of Commerce emphasizing the need for strong enforcement [1]. Group 2: Historical Context and Comparisons - It is rare for companies to face fines in the 10-digit range for export control violations; for instance, Seagate Technology was fined $300 million (approximately 22.1 billion RMB) in 2023 for supplying hard drives to entities on the U.S. Entity List [2]. - In November 2024, the U.S. Department of Commerce ordered TSMC to cease shipments of chips suitable for AI applications that are 7nm or more advanced to China [2]. Group 3: Political and Economic Implications - Former President Trump warned TSMC that failure to build factories in the U.S. could result in taxes as high as 100%, criticizing the Biden administration's subsidies for TSMC's Arizona factory [4]. - TSMC announced plans to invest an additional $100 billion (approximately 735 billion RMB) in the U.S. for production and R&D centers, likely as a strategy to mitigate potential tariffs [4]. - Despite these investments, Trump announced a 32% tariff on imports from Taiwan, indicating ongoing considerations for semiconductor tariffs [4].