Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has stopped new orders from Huawei Technologies Co (華為) in response to Washington’s move aimed at further limiting chip supplies to the Chinese company, the Nikkei reported yesterday, citing multiple sources.
The orders that TSMC took before the new ban and those that were already in production are not affected, and could continue to proceed if those chips could be shipped before the middle of September, the report said.
TSMC, the world’s biggest contract chipmaker and a key Huawei supplier, on Thursday last week announced plans to build a US-based plant and on Friday added that it was “following the US export rule change closely.”
Photo: David Chang / EPA-EFE
A new rule, unveiled on Friday by the US Department of Commerce, expands US authority to require licenses for sales to Huawei of semiconductors made abroad with US technology, vastly expanding its reach to halt exports to the world’s No. 2 smartphone maker.
TSMC said it does not disclose order details and added that the report was “purely market rumor.”
Huawei yesterday assailed the latest US move to cut it off from semiconductor suppliers as a “pernicious” attack that would sow chaos in the global technology sector and other industries.
“The decision was arbitrary and pernicious, and threatens to undermine the entire [technology] industry worldwide,” a Huawei spokesman said.
Huawei, which has largely weathered an escalating 18-month campaign by US President Donald Trump’s administration to isolate it internationally, said its business “will inevitably be affected” by the new American salvo.
It would “impact the expansion, maintenance and continuous operations of networks worth hundreds of billions of dollars that we have rolled out in more than 170 countries,” it said.
The statement was issued during an annual summit of technology analysts that it organizes at its headquarters in Shenzhen, China.
“This decision by the US government does not just affect Huawei,” it said. “It will have a serious impact on a wide number of global industries” by creating uncertainty in the chip sector and technology supply chains.
STAYING AHEAD: Fitch said that TSMC remains technologically ahead of others, but Samsung is building a new chip fab, while China is investing in its domestic industry As escalating US-China tensions and COVID-19-related production disruptions force US technology supply chains to transform, Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) US$12 billion chip fabrication plant in Arizona would be key to spurring greater US production of core semiconductor components, Fitch Ratings said. “We view the US-TSMC alliance as a first step in building a more autonomous US technology supply chain, given high barriers to entry, specifically related to the significant capital and design capability required for leading-edge semiconductor manufacturing,” Fitch said in a statement on Tuesday. “By working with TSMC, US chipmakers will not face the financial burden of incremental investment
DIVERSIFICATION: Although COVID-19 would push more companies to produce in emerging markets, DBS said that it was unlikely that firms would totally leave China Geopolitical tensions and supply disruptions are expected to accelerate the migration of manufacturing out of China, as concerns about the risk of production concentrated in one country increase, S&P Global Ratings said. Although its economic expansion might be weaker than previous levels due to the accelerated relocation of manufacturing, China’s economic growth would still be stronger than that of most other economies, the ratings agency said. “While absolute growth rates will moderate, we believe China’s economic performance will continue to be a key sovereign credit support,” S&P Global Ratings credit analyst Tan Kim Eng (陳錦榮) said in a statement on Thursday. “Its growth
Taiwan’s corporate landscape has changed significantly over the past 20 years, with Hon Hai Precision Industry Co (鴻海精密) replacing Formosa Plastics Corp (台塑) as the revenue leader, while Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電) has emerged as the most profitable firm, a survey of Taiwan’s 50 largest companies published on Tuesday last week showed. The Chinese-language CommonWealth Magazine survey ranked Taiwan’s 50 largest companies based on their revenue last year, and compared them with the results of a similar survey it conducted in 2000. Only 33 companies on the original list remained in this year’s rankings, the survey found, following two
Luxury hotel Mandarin Oriental Taipei (文華東方酒店) yesterday announced that it would suspend guestroom operations and lay off related staffers from Monday, as regional border controls and travel restrictions are unlikely to be lifted anytime soon. The partial shutdown would not affect the five-star hotel’s restaurants, bars, spa, and conference and banquet facilities, which this month have almost recovered to pre-pandemic levels, it said. “Mandarin Oriental Taipei will suspend all guestroom services from June 1 due to the impact of the COVID-19 pandemic,” the hotel said after four months of maintaining normal operations proved unsustainable. The change necessitates downsizing and the hotel is handling
RSS