TSMC risks potentially substantial fines if the probe confirms that the company helped Huawei access US-made chips. Last year, Seagate was fined $300 million for shipping 7 million disc drives to Huawei. The chipmaker could also face "more severe penalties," The Information reported, such as restrictions blocking TSMC from accessing US tech.

The US is investigating whether Huawei accessed advanced American chip technology via TSMC, despite a ban on such sales.

Key Takeaways Chip stocks rose Thursday after the world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing Co., reinvigorated Wall Street’s AI enthusiasm. Better-than-expected quarterly results and a rosy financial outlook powered its shares higher,

Taiwan Semiconductor Manufacturing stock was rising after the company posted a big jump in profit and sales for the third quarter, beating analysts’ estimates. It’s a sign of strong demand for artificial-intelligence chips.