TSMC-Huawei Link Is a Lesson, Not a Failure: Catherine Thorbecke

Taiwan Semiconductor Manufacturing Co. now carries the weight of both the greatest hopes and darkest fears about the US tech race with China.

The chipmaker is being celebrated for a major win in America’s efforts to onshore critical semiconductor manufacturing, with news of higher-than-expected yields at its Arizona plant. It is also at the center of what one US lawmaker called a “catastrophic failure” of export controls, after it emerged that TSMC chips made their way into Huawei Technologies Co.’s devices, potentially violating sanctions.

The dueling headlines within a week of each other show the immense pressure the US is putting on ...