Taiwan Semiconductor Manufacturing Co., ceased new orders from Huawei Technologies as U.S. export controls have strictly restricted the Chinese company's access to crucial chip supplies.
"TSMC has stopped taking new orders from Huawei after the new rule change was announced to fully comply with the latest export control regulation," a person who knows about the matter said. "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."
The U.S. Commerce Department said that before all non-U.S. chip manufacturers send the chips to Huawei have to apply for a license. Another person familiar with the matter said that Huawei is TSMC’s No.2 customer, but the chipmaker has to abide by the U.S. rules.
Huawei completely relies on TSMC to produce its progressive chip designs -- including all of the mobile processors used in Huawei's flagship smartphones.Not only that,the Taiwanese company also provides artificial intelligence processors and networking chips for Huawei, TSMC is literally Huawei’s lifeline.
This tough relationship has put the Taiwanese company in Washington-Beijing tensions. TSMC said it "does not disclose customers' order details," adding that "TSMC has always complied with the laws and applicable regulations." The company said it is working on an assessment of the impact of the new export controls.
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