TSMC halts new orders from Huawei as the US tightens its export controls

TSMC's shipments to Huawei will end in mid-September

TSMC halts new orders from Huawei as the US tightens its export controls

TSMC halts new orders from Huawei as the US tightens its export controls

According to a report from the Nikkei Asian Review, TSMC is cutting off Huawei from its chip manufacturing capabilities in response to the US' latest export controls, which apply to "all non-U.S. chip manufacturers using American chipmaking equipment". 

TSMC can fulfil existing orders for Huawei and its subsidiary HiSilicon, assuming these orders can be fulfilled before mid-September. At the time of writing, Huawei/HiSilicon is said to be TSMC's second-largest customer, though the market's strong demand for TSMC's 7nm and 5nm silicon will likely see the company's spare fab space occupied by orders from other manufacturers.

Huawei is the world's largest telecom equipment manufacturer and the world's second-largest smartphone producer. Both of these markets rely on using cutting-edge chipmaking technologies to remain competitive, making their inability to access TSMC's fabs a critical blow against the company's hardware roadmap. China's homegrown chip producers cannot offer the same cutting-edge production techniques as TSMC, placing Huawei several steps behind those who can access TSMC's manufacturing facilities. 

The US' actions against Huawei will likely see China take countermeasures against the US, actions which could put a huge strain on the US economy. Huawei has been preparing for the US to make this move and has been stockpiling components to allow the company to continue making products until it can transition to non-US tech. 

With the US' new regulations, Chinese companies must apply for a license to receive further shipments of restricted technologies or items. This news came to light shortly after TSMC confirmed its plans to build a new chipmaking facility in the US

TSMC to build a chip building plant in the US with Government backing  
You can join the discussion on TSMC halting all new orders from Huawei on the OC3D Forums

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Most Recent Comments

18-05-2020, 13:27:05

Are Americans that stupid? One word from China can send America into the dark ages. Are they not aware that they are at the mercy of China?Quote

18-05-2020, 13:53:31

If we were at the Mercy of China we wouldn't be fighting them in trade. You seem to forget America is still the strongest and really only Super Power in the world. Preventing China from becoming one is important. They are screwing over the world in trade(also COVID-19). Can't let that happen and it should be equal trade for everyone. If our allies weren't so scared they could also put pressure on China.

Also keep in mind TSMC has already announced building a 5nm foundry in the US. American government wants American designs to stay within our borders. Preventing our designs from leaving and into the China market. It's the exact same thing China has done forever. Keep everything within and use opportunity to screw over the rest of the world. Difference is America is only doing this to one country instead of the world.

Politics especially global is really complex and only leads to arguing and name calling as you've already demonstrated by generalizing a country as "stupid" when in fact probably less than 100 people made this decision.Quote

18-05-2020, 14:13:42

Yea it was a bit rush comment from me. I am not an expert in global politics.

America's rather spoiled way of living depends solely on China's manufacturing. And that is completely America's fault. They have used China's cheap labor. Without it, they are in a very sour situation. What am I saying is that America is deepening only on China, but China doesn't depend only on America. China makes stuff for the whole world. America is a big piece of cake, but there is plenty of cake left. Yes, they couldn't just shake it off like a mild cold, but it won't kill them.

TSMC factory is a part of Trump's presidential campaign. It will be there to look good and to make chips for the US army. It probably won't make many consumer chips. Foxconn I think has several factories in the US and they pretty much collect dust. Those factories need to operate with a net loss because labor is so much more expensive in the US.Quote

18-05-2020, 14:25:25

Originally Posted by Avet View Post
Are Americans that stupid? One word from China can send America into the dark ages. Are they not aware that they are at the mercy of China?
If China tries to break the US economy it would effectively break the world economy as well. At which point it will be forced to fix it or be wiped off the map by the rest of the world.Quote

18-05-2020, 14:59:16

The TSMC factory is for anything. It can be used by AMD, Intel, Apple, etc. It's not only for the government. The government is most likely just giving tax breaks so they can effectively get billions of dollars for free. Why wouldn't you build a factory if most of it was paid for?

It's not apart of his campaign directly. Trump has been going on forever about relying less on China and improving American industry. Which he largely has so far. His reformed tax plan was a massive boom to the economy and industrial strength. It's just not enough yet. There is no overnight solution and it will take another 4 years of him doing what he's doing to put America in a better position to fight China. That's also why his plan of for every new regulation it requires 2 previous regulations to be removed. To help deregulate the economy which makes it cheaper and ensuring only relevant regulations are in place and not old ones. I'm sure everyone knows how complex the American tax system is. I can only imagine how much of a joke it is to other countries point of view. Because I think it is.

So while it may look petty or stupid now, in the long run it's the best thing for America and that's really all any person living here can ask for. It's better than the alternative where past Presidents just let China so whatever they want ending up to where we are today. For good reason in the beginning. Helping a country get it's act together but they let it go to far and never bothered to fix it because, well "votes".

Again it's politics. Volatile at that too with modern cultural state.Quote

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