The US Department of Commerce is reportedly investigating TSMC for letting chips enter Huawei’s AI products, potentially resulting in a fine as high as US$1 billion. Taiwan’s Minister of Economic Affairs, Jyh-huei Kuo, addressed the rumors on April 9, stating that TSMC maintains strict compliance with international regulations and that the Ministry has not received any official notice regarding the investigation. Kuo refrained from commenting on what he described as unverified speculation.

The US reciprocal tariff policy has unleashed significant challenges for Taiwan’s machinery industry, particularly the machine tool and component sector, which is heavily reliant on exports and dominated by small to medium-sized enterprises (SMEs). The Taiwan Machine Tool & Accessory Builders’ Association (TAMI) has characterized the situation as “nuclear-level,” demanding urgent government intervention.

Following the announcement of the reciprocal tariff policy by US President Donald Trump, South Korean companies are thoroughly reviewing their supply chains and formulating countermeasures. Enterprises with production bases in China and Vietnam may face direct impacts, raising public concern.

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