This fine will reportedly be in the form of a settlement the semiconductor giant will have to pay as a result of the US Department of Commerce's alleged investigation into whether it has broken export rules by making chips that end up in Chinese company Huawei's hands.

Taiwan Semiconductor Manufacturing Company (TSMC) may have to pay a fine of $1 billion or more to resolve a U.S. export control investigation related to a chip it made that was used in a Huawei AI processor,

The US$1 billion-plus potential penalty came from export control regulations allowing for a fine of up to twice the value of transactions that violated the rules, the sources said