Taiwan Semiconductor Manufacturing Company faces potential $1 billion fine following a U.S. export control investigation into chips used in Huawei's Ascend 910B AI processor. The investigation revealed TSMC's export-controlled AI chip dies were incorporated into Huawei's mass-produced AI accelerator through Chinese chip designer Sophgo. TSMC maintains compliance with regulations and claims no direct supply to Huawei since 2020, while proactively communicating with U.S. authorities about the matter.