TSMC denies U.S. is probing the company after report suggests blacklisted Huawei is using its chips

Taiwan Semiconductor Manufacturing Company has denied that the U.S. was investigating its dealings with Chinese tech company Huawei, following reports that its chips were found in the Shenzhen-based firm’s products. 

“TSMC is a law-abiding company and we are committed to complying with all applicable rules and regulations, including applicable export controls,” a company spokesperson told CNBC in a statement on Wednesday.

Tech-focused publication The Information had reported last week that the Commerce Department was probing whether TSMC had been making AI or smartphone chips for Huawei, in violation of U.S. export rules. 

“We proactively communicate with the U.S. Commerce Department regarding the matter in the report. We are not aware of TSMC being the subject of any investigation at this time,” the TSMC spokesperson added.  

Huawei was placed on a U.S. trade blacklist in May 2019 over national security concerns. 

TSMC, which is the world’s largest contract chip manufacturer, said that it has not supplied chips to Huawei since mid-September 2020.

Separately, Reuters reported Tuesday that one of TSMC’s chips had recently been found in a Huawei product, indicating possible export violations and prompting the chip maker to notify the Commerce Department. 

Citing anonymous sources, the report claimed the discovery was made after tech research firm TechInsights took apart a Huawei product and found a TSMC chip as part of its multi-chip system. 

TechInsights has yet to release a public report on its findings and has not yet responded to a request for comment from CNBC.

TSMC declined to comment further on the specific claims made in the Reuters report.

There has been renewed attention on Huawei and its access to advanced semiconductor tech since it released a smartphone containing a 5G chip, a technology that the U.S. had sought to restrict the company from accessing.

The U.S. Commerce Department and Huawei did not immediately respond to requests for comment. 

TSMC’s shares fell 1.4% on Wednesday.