The United States Department of Commerce is investigating whether Taiwan Semiconductor Manufacturing Co. (TSMC) has been providing chips to Chinese company Huawei Technologies and violating the US export regulations, The Information reported, citing people briefed on the matter.

According to the sources, the Commerce Department suspects that Huawei may have purchased chips from TSMC using intermediary companies with different names. The department is looking into whether TSMC completed the required know-your-customer due diligence when taking orders. If the Commerce Department finds that TSMC breached export rules effective since 2020, when the US banned Huawei from buying chips produced with American equipment, it could impose a fine on the Taiwanese firm or even temporarily limit TSMC's access to US technology.

TSMC ensured that it is "committed to complying with all applicable rules and regulations, including applicable export controls."