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The US stopped Huawei’s latest $700 million order to TSMC

By Samuel Martinez May 18, 2020, 3:00 pm

It seems that Huawei is already being affected by the latest changes in the Huawei ban. The US started to implement more restrictions on Friday, and according to Nikkei Asian Review, the TSMC has turned down Huawei’s latest chipset order because of these new rules.

The US Commerce Department set new rules last Friday, which make manufacturing companies that use US equipment and software to get a special license to sell to Huawei. Some of the sources say that:
“TSMC has stopped taking new orders from Huawei after the new rule change was announced to fully comply with the latest export control regulation.”
“But those already in production and those orders which TSMC took before the new ban are not impacted and could continue to proceed if those chips could be shipped before mid-September.”

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Huawei hasn’t made comments on the current situation, while the TSMC says that these are “purely market rumors.” The report says that the rejected $700 million order from Huawei was for its 5nm and 7nm chips, which could be the upcoming Kirin 1020 and the current 5G baseband chips, respectively. It is also rumored that TSMC could be working on full capacity and wouldn’t be able to take any more orders. Whatever the case, Huawei could’ve also been stockpiling components since the end of 2019 to ensure a steady supply of components.

The Chinese tech giant could also start looking for alternatives to the TSMC, such as Qualcomm and MediaTek. Still, there’s no guarantee that these companies would be able to sell their silicon to Huawei since they also use the TSMC to produce their chips.

Source Android Authority

Via Nikkei Asian Review

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