Sunday, July 25, 2021

The US needs TSMC to Quit Manufacturing chips for Huawei

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The Trump administration is considering changing U.S. regulations to allow it to block shipments of chips to Huawei Technologies from companies such as Taiwan’s TSMC

The USA now wants TSMC to stop manufacturing chips for Huawei

A change in the US Department of Commerce’s Foreign Direct Product Rule has been proposed that will make companies using US technology seek a license to sell to Huawei. And as you know, TSMC is the company’s main supplier for the Kirin chips.

“There is no production line in China that uses only equipment made in China, so it is very difficult to make any chipsets without U.S. equipment,” Everbright wrote.

And if this comes through somehow, it would be virtually impossible to manufacture chips without the use of US tech. There’s no production line in China that doesn’t use machines from the US.

However, some members of the Trump administration point out that this move would ultimately cost the USA a lot more than China or Huawei in particular. In the long run, such a move would drive innovation away from the US and benefit China.

It’s not set in stone, though, as high-level meetings are being held this week and next week.

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