TSMC will not accept new orders from Huawei, in line with US sanctions on the Chinese giant. The new U.S. export regulations specifically for Huawei also apply to the use of manufacturing equipment developed by U.S. companies, so the chip manufacturer cannot fulfill orders for Huawei with U.S. technology, including hardware and software, unless specifically licensed by the U.S. authorities. – even if the plant itself is located outside the country.
The move is a very serious argument for both the Chinese company and TSMC after Huawei, the chipmaker's second-largest customer, after Apple – introduced 5G smartphones. , and according to ZDNet, it is the company 's largest customer in terms of chips for base stations. As U.S. Secretary of State for Economic Growth Keith Krach said, 10-12 percent of TSMC's turnover comes from China, with the vast majority coming from Huawei.
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The decision does not apply to orders received before the ban or to devices already in production, at least if the chip manufacturer can deliver them before 14 September this year. Huawei needs to quickly find a new partner to equip its new devices with fresh chips – the company has previously suggested that instead of TSMC, it will manufacture chips developed by the HiSilicon division with Samsung, and some chips with SMIC (Semiconductor Manufacturing International Corporation ), which recently received a $ 2.2 billion investment from the Chinese government. Now, the company seems to have to make the full switch sooner than expected, deciding on any potential partner.
In its response to the decision, Huawei categorically opposed U.S. regulations, stressing that a number of technology components have changed since the ban was introduced last May. unreachable to the company – however, the company remains committed to complying with U.S. government regulations. In a statement, the company called the regulation an arbitrary and harmful decision, saying it threatens to undermine the entire global industry and will also affect the expansion of the company’s networks in more than 170 countries. According to the company, the regulation is unethical and launches a comprehensive investigation into it.
Gellert is Technology Editor at Counting News Media and contributor at other major tech publications. Her interests includes testing new gadgets and reading.