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US government is trying to prevent TSMC from selling chips to Huawei

The US government is doing everything it can to harm Huawei’s reputation and damage its business, but none seems to have played a significant role.

The US government will not give up on this. The Trump administration is considering a new plan to continue to create difficulties for Huawei.

According to Reuters, the United States plans to add new regulations for Huawei and ban TSMC, the world’s largest chip maker, from supplying to Huawei. The new restrictions will be discussed at high-level US meetings this week and next.

Since Huawei is one of TSMC’s largest customers, this proposal will not only affect Huawei but also cause a major blow to TSMC.

In May 2019, the U.S. Department of Commerce added Huawei to its physical list, preventing it from acquiring U.S. technology, including semiconductors. After these restrictions, Huawei found alternatives to most U.S. technologies, invalidating the U.S. trade ban, and minimizing its impact.

The new regulations will require foreign companies using US chip manufacturing technology to obtain US approval before supplying to Huawei. At this time, it is not known when the United States plans to launch this provision.

Last week, the U.S. government extended Huawei’s business license in the United States for another 45 days. This shows that U.S. companies and markets still need Huawei. No other company can replace it in this position.

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