TAIPEI (Taiwan News) — TSMC responded to foreign media reports that China’s Huawei had purchased 7-nanometer products through a third party.

The company said it informed US and Taiwanese authorities in October that a customer chip it produced may have been transferred to a restricted entity or used in a restricted entity's products, per CNA. In a TSMC statement issued in mid-April, the company reiterated its compliance with US requirements, saying it had stopped shipping orders to Huawei since mid-September 2020.

Furthermore, TSMC said it would take prompt action to ensure legal compliance, including due diligence and customer communication. TSMC said it was proactive in communicating matters to the US Department of Commerce and providing information and assistance.

TSMC's annual report said that even if TSMC makes every effort to comply with export control regulations and sanctions, it can not guarantee that its business activities will be fully compliant. The annual report also said that as of 2024, operating results have not been significantly affected by the expanded export control regulations or new response measures.

However, as global trade tensions deepen, measures may harm TSMC's business and operations. This may expose TSMC to legal liability and financial losses.