TSMC complies with a US order to ban sales to Huawei
TSMC complies with a US order to ban sales to Huawei
(Mark Liu) told shareholders that the beleaguered Huawei company had another success after it was praised by the world's largest chip manufacturer: It needs US approval to sell main semiconductor parts to China Telecom and the head of the manufacturer. The Taiwan semiconductor manufacturer (TSMC). As long as Washington does not make a special exception, you can not deal with Huawei.

This severely damaged Huawei's supply chain, and Huawei was involved in a deep diplomatic dispute between Washington and Beijing. Last month, the United States announced controls for companies that use American devices to provide Huawei with microchip technology, fearing the Chinese system might hear the West.

The new US Department of Commerce regulations require companies that manufacture or develop Huawei hardware chips to obtain a license to use American tool boxes within 120 days. He tried to bypass his control measures.

For companies like TSMC with valuable manufacturing facilities and companies with clients in the U.S. and China, the new foundation is a problem, and U.S. businesses are more personalized with clients like Apple and Qualcomm.

"This can be resolved not only by interpreting the rules, but also in terms of the structure of the US government," Liu said in a speech at TSMC's annual general meeting.

Companies like TSMC can try to exploit these weaknesses by introducing brokers into Huawei sales channels. However, Liu suggested that this is not an option because his company is trying to avoid possible catastrophic sanctions, but the company will only implement them once. The consultation period for the new rules expires in July and you can obtain an exception from the US Department of Commerce.

Liu said: If the US restrictions on Huawei prevent sales to Chinese companies, the company can quickly fill demand gaps, but added: "We hope it doesn't."

Meanwhile, TSMC continued to invest in the United States, including setting up a $ 12 billion chip manufacturing facility in Arizona. The company announced the decision a few hours before the US Commerce Department proposed a proposal for a change in chip export rules in May. Restrict TSMC sales to Huawei.

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