Taiwan Semiconductor Manufacturing Company (TSMC) said on Tuesday it has informed the United States of a potential attempt to have it manufacture AI chips for China's Huawei in circumvention of export controls.

Taiwan Semiconductor Manufacturing Company (TSMC) has informed the U.S. government about a potential attempt to manufacture artificial intelligence (AI) chips for Huawei, a Chinese technology group, in violation of export controls.

Possible export-controls violation benefiting mainland-based tech titan hit by American sanctions could lead to penalties.

TSMC has advised the U.S. that there was an attempt by Huawei to violate sanctions against China restricting the export of AI chips to China, as the probe that could affect Apple chip production rolls on.