25 May 2020
Last week, the US announced the extension of the trade ban on Huawei for another year. And, in one of its consequences, the US also blocked shipments to Huawei from some global chipmakers, including TSMC.
Now, a report from Nikkei Asian Review presents the information that Taiwanese Semiconductor Manufacturing Co. (TSMC) has stopped taking new orders from Huawei Technologies. The report claims the decision was made to comply with new United States export rules that were announced last week following the extension period announcement. So, from now on, Huawei will not be able to obtain chips produced using US technology, including manufacturing equipment.
It should be noted that the orders taken before the ban or already in production are not affected, if they can ship before September 14.
Huawei is TSMC’s second-biggest customer after Apple and it has so far used many advanced chips built by the semi-conductor company. The new rule will impact Huawei a lot in its smartphone business.
President Donald Trump announced the extension of the ban on US companies from using or buying telecoms equipment from Chinese manufacturers – Huawei and ZTE. But, Huawei believes that the US has specifically targeted it only.
Huawei has reportedly hit back at the US following trade extension ban. Huawei rotating chairman Guo Ping issued a confrontational message during the Huawei’s Global Analyst Summit and also warned that such restriction will have an impact on Huawei’s business. Ping said Huawei has been “specifically targeted” by the US.
He also said,
In spite of that, the challenges over the past year have helped us develop a thicker skin, we are confident about finding solutions soon.