Major Taiwanese news network Liberty Times Network (LTN) recently reported that officials in the U.S. Trump administration have agreed to take new steps to reduce the global chip supply to Huawei significantly. The plan directly points to Huawei’s largest chip supplier TSMC. Taiwan Semiconductor Manufacturing Company (TSMC) is the world’s largest dedicated independent semiconductor foundry, headquartered in Hsinchu, Taiwan. According to the newly proposed rules, the United States will have to certify any foreign companies that use U.S. chip-making technology or equipment before they can sell chips to Huawei. According to anonymous sources, the new effort was designed to stop TSMC from manufacturing chips for Huawei. It is still unclear whether President Trump gave the OK to this plan or not. He may have some hesitation because the implementation of this plan may not only hurt TSMC, but may also impact U.S. companies. Huawei refused to comment on the news and TSMC said it cannot comment on hypothetical questions and won’t discuss matters regarding any specific customer.
Source: LTN, March 27, 2020