US TSMC probe puts iPhone chips at risk
A US Commerce Department investigation into a possible sanctions breach by TSMC could spell trouble for Apple, as its chip partner could face penalties that ultimately harm production of iPhone and Mac chips.
A TSMC factory sign - Image credit: TSMC
The United States placed sanctions against Huawei in 2020, blocking the company from accessing components from US companies without approval from the Commerce Department. This also prevented Huawei from using chips made with US-sourced equipment, a restriction that may now cause problems for TSMC, and by extension, Apple.
The US Commerce Department contacted TSMC in early fall, a source of The Information claims, to query if the chip maker was involved making smartphone chips or AI chips for Huawei.
The query seems to be the initial stages of a probe into whether TSMC broke export rules by willingly supplying Huawei with the chips.
It is believed that TSMC was contracted by an intermediary firm that masked Huawei as its client, sources say. TSMC does have to perform due diligence on orders to make sure they are legal, and the probe could determine whether TSMC's checks were sufficient enough to remain legal.
When the sanctions were imposed on Huawei, TSMC said it had stopped taking new orders from the Chinese tech company.
If true, TSMC faces the prospect of penalties, including sanctions of its own. The latter could be more damaging, as it could directly impact the production of chips for clients, which includes Apple.
If TSMC is temporarily blocked from accessing US technology and equipment, this could prevent it from proceeding with production of new lines, or to maintain existing lines. This could put products like Apple's mobile chips in danger of becoming severely limited.
In that case, Apple may have to search for another chip partner in the interim. But, with Apple's size of manufacturing, doing so could be slow and extremely costly.
Such a penalty could have even greater implications. TSMC's facility in Arizona is still being worked on, and a block would cause progress to cease immediately.
The facility's political element may help sway the Commerce Department away from a sanctions penalty. In April, TSMC secured a $6.6 billion Chips Act subsidy from the Commerce Department to continue its chip investments in Arizona.
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It claims there is a reasonable probability that the US would force US companies to stop buying chips from TSMC because it didn’t do adequate due diligence to detect a shell company that was planning to sell the chips to Huawei.
Furthermore, the article claims the US would shut down TSMC’s new plant in Arizona.
This is stock manipulation at its finest. Funny how it was issued on the day the world found out Apple sold 20% MORE iPhones in China than last year and the stock soared.
The Commerce Department/USDA should be more concerned about the meat crisis in the USA and why a Chinese company owns Smithfield, Farmer John and Nathan‘s hotdogs how does that happen? And to top it off Listeria seems to be everywhere in prepackaged food. With ten people dead and many people sick because of it in the latest outbreak after Boars head.
Once achieved (I would not be surprised if TSMC, ASML and Samsung are already working on it anyway) sanctions wouldn't be worth the paper they are written on and the entire US semiconductor industry would collapse worldwide.
'Weaponisation' was never going to work (just like tariffs don't either) and right from the outset, the grey market was always an issue.
Then again, these extraterritorial, unilateral sanctions breaches by non-Chinese players are almost always 'fined' and that's it.
Seriously. We shouldn't be handing over our economic production to an adversariel nation.
You know, I can't help but laugh myself silly when I see all the leftists talking about "dictators" and "threats to Democracy" in light of how OLD Trump is. Do those nuts think he'll retain the Presidency after 4 years and then somehow live another 20 years after that? Poppycock. It's all partisan bickering, with the loudest mouths hoping that all their screams will sway the vote.
None will sway my vote by absentee ballot which has already been cast.
My advice. Play Spock. Don't allow emotions or your personal personality likes and dislikes to affect your vote. Vote the issues. And turn off the news media when mulling the issues so all that propaganda doesn't cloud your voting judgment.
Also, it's very hard to vote against the way you've been trained by family and friends who think like you, but the reality is many of them vote with emotions, party-line. They hardly sway from that. Educate yourself, think logically, then vote. That's the best you can do. And hopefully the person you vote for will have both America and Apple's best interest in mind, because if you are a US Citizen like I am, regardless of where you reside in the world, it ultimately will impact you in one way or another. Your votes really do impact your future.
I can think of only one word to describe your belief that Spock would vote for Trump: Fascinating.
I vote differently than my parents. Do you?
In educating yourself, what did you learn about whether Haitian immigrants are eating dogs and cats in Ohio? What sources did you use to educate yourself on tis topic?
The OP’s comment that you’ve objected to isn’t “thinly-veiled” — it’s talking about how Trump’s world is all about quid pro quo, so “Tim Apple” (itself a Trump cognitive glitch) will have to give him something to get him to not blow up arguably the most profitable and productive technological partnership of our time (Apple and TSMC).
Do you deliberately TRY to misread what I write, or is it simply a matter of reading comprehension for you, friend? I said we should set emotions aside. Like Spock, we have emotions. Problem is, most people don't choose to suppress those emotions, but they should. THAT, my misreading friend, is what I said.
I vote with them at times and against them times. However, I also try to convince them when I think they have overlooked something important, and often times that triggers a change in how they would have voted. So it's not simply a matter of voting differently than your parents. My point is that most people vote habitually, party-line. And yes, parents and family do impact a lot of people. Glad to hear you break from your parents, unless that means you vote for liberal candidates, in which case I root for your parents.
Neither I nor the article makes mention of that topic. As such, you'll pulling it out of thin air as a weapon of sorts. "Let's see how this guy I disagree with answers me on this!" That's your aim here. Sorry but "Homey don't play that!"
Opening Post, my friend? Sorry, but I thought it was crystal clear, even without me mentioning the forum handle, that I was talking about the post by Eightzero, which as you know is NOT the Opening Post.
In answer to your question, I am not worried about Trump and the executive order because Trump will do whatever it takes to protect American interests domestically and abroad (as per his own promises), and Apple is a big part of that. He would defend Apple regardless of past executive action by way of new executive action, if required. Whether you support or opposed Trump, I think you probably know he would do that too. Tim Cook certainly believes it. Otherwise, why reach out to Trump at all? Cook knows. He really knows!
DJT is currently holding events in blue states (where the money is), raising funds to challenge the election after he loses. He’s not even trying to win. The big money was in winning the nomination and taking over the GOP. He will take a sizable portion of the proceeds for himself and his own legal problems (in that order), but whatever remains will be used to once again attempt to overturn a US presidential election that he has lost.