07:58 AM EDT, 10/23/2024 (MT Newswires) -- (Update with the Commerce Department's response in the fifth paragraph.)

Taiwan Semiconductor Manufacturing ( TSM ) notified the US Department of Commerce that one of its chips was found in a Huawei product, a possible violation of export restrictions on the Chinese company, Reuters reported Tuesday.

Tech research firm TechInsights discovered the chip after disassembling the Huawei product and notified Taiwan Semiconductor, which then notified the Commerce Department about two weeks ago, a person familiar with the matter told Reuters.

"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 MT Newswires. "In compliance with the regulatory requirements, TSMC has not supplied to Huawei since mid-September 2020.

"We proactively communicated with the US 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 said.

Meanwhile, a spokesperson for the Commerce Department told MT Newswires via email that its Bureau of Industry and Security "is aware of reporting alleging potential violations of U.S. export controls," adding that the agency "cannot comment on whether any investigation is ongoing."

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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