A recently enacted law will require any company that uses American tools or designs to apply for a license to sell to Huawei, which appears to extend to multinational TSMC. However, once this stock runs out and if the political situation hasn’t been resolved by then, it would mean big troubles for the Chinese vendor. It will be interesting to see what solution Huawei finds to this problem, or if it ends up reaching an agreement with the United States to get out of this complex situation. Starting September 14 TSMC will stop accepting orders from Chinese company Huawei, leaving it without a partner to manufacture its chips.The Chinese giant will have to find who makes these SOCs, since they are a key part of its business, and according to industry sources, it would already be talking to SMIC, a semiconductor manufacturing company that uses 100% Chinese technology. The GSMA, Mobile World Live, MWC Barcelona, MWC Los Angeles & MWC Shanghai terms and logos are trademarks of the GSM Association
AMD and Nvidia will utilize TSMC for large batches of upcoming products. TSMC is not a U.S. company, and was not affected by previous bans on supplying Huawei. The second was the announcement that TSMC would build a state-of-the-art fab in Arizona. And although mobile sales are down, the need for expensive 5G equipment is expected to increase sales in that sector, too.Huawei’s outlook is not as rosy. Expanded export control rules could prevent Taiwan Semiconductor Manufacturing Company (TSMC) from selling chips to Huawei, according to a senior US official.
TSMC stops chip sales to Huawei TSMC has stopped taking new chip orders from Huawei following the US ban on the sale of chips that have been made using US technology, reports the Nikkei, TSMC responded to the report saying it was based on ‘market rumours’ but it did not deny them. On a regional basis, 60 per cent of its sales come from the US, with 20 per cent from China.© 2020 GSM Association. TSMC prepares for block on Huawei sales 10 JUN 2020 The head of Taiwan Semiconductor Manufacturing Company (TSMC) warned major customer Huawei could be barred from accessing its components following a recent US move to close a loophole around its trade blockade on the Chinese vendor, The Telegraph reported. Surprisingly enough, the company states that the Huawei ban is unlikely to have an effect on the company’s revenues, with other customers being able to pick up coveted manufacturing capacity. However, SMIC only makes chips at 14nm, so it's not enough for the brand's top-performing products, and they will have to continue the search.
The earlier rounds affected American fabless suppliers (like Qualcomm). And As for TSMC, Huawei represented the manufacturer’s biggest customer with a 23% revenue share in 2019.