U.S. wants to block TSMC chip supplies to Huawei

The U.S. government is trying every possible way to defame Huawei and to hurt its business but nothing seems to be working. With this desperation, the Trump administration is considering a new plan to create difficulties for the company.

According to Reuters, the U.S. is planning to add new regulations on Huawei and to bar its supplies from the world’s largest chipmaker – TSMC. The new restrictions will be discussed at a high-level U.S. meeting this week and the next.

Since Huawei is one of the top customers of TSMC, this proposal will not only affect Huawei but also become a big blow to TSMC.

Back in May, the US commerce department placed Huawei in the Entity-List, which blocks its access to American technologies including semiconductors.

Following the restrictions, Huawei found alternatives to most of the US technologies, making the US trade ban ineffective and shrunk its effect to the lowest.

Under the current regulations, key foreign supply chains remain beyond the reach of the US authorities, prompting inter-agency discussions about the possible changes to two key rules that could expand U.S. authority to block more foreign shipments to the company, giving more reach to Huawei blacklisting.

The new rules will require foreign firms that use U.S. chipmaking technologies to get U.S. approval (license) before supplying to Huawei. Currently, it’s not confirmed when the U.S. is planning to initiate this regulation.

Moreover, last week the U.S. government extended the 45 days to Huawei’s business license, which shows the U.S. still needs Huawei’s guidance for its companies and failed to fill its shoes.

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