TSMC’s China Delivery to Huawei: A Blow to US Sanctions
In a significant turn of events, TSMC, the world’s largest contract chipmaker, has reportedly delivered a new batch of chips to Huawei’s facilities in China. This development comes at a time when US sanctions against Huawei have
dramatically
affected the Chinese tech giant’s global supply chain. According to a
Reuters report
, TSMC has continued to manufacture and deliver chips to Huawei despite the ongoing US restrictions, which could mark a major
blow
to Washington’s efforts to curtail Huawei’s technological advancements.
The US sanctions, imposed in May 2019, prohibit American companies from selling components and software to Huawei without the government’s approval. The restrictions have been a significant challenge for Huawei, as many leading semiconductor companies such as Intel and Qualcomm were forced to halt their shipments to the Chinese firm. However, TSMC, which is based in Taiwan and not subject to US jurisdiction, has managed to sidestep these restrictions by focusing on its China-based operations.
The latest delivery of chips to Huawei’s Chinese facilities is a clear indication that TSMC’s China operations are thriving, despite the US sanctions. The Taiwanese chipmaker has reportedly ramped up its production capabilities in China to cater to the growing demand from local tech companies, including Huawei. TSMC’s ability to continue supplying chips to Huawei could be a major boost for the Chinese firm as it seeks to maintain its position in the global tech market.
It remains to be seen how the US government will react to this development. The Trump administration has been vocal about its concerns regarding Huawei’s technological capabilities and its perceived ties to the Chinese government. There is a possibility that the US could take retaliatory measures against TSMC, but it remains unclear what form these measures might take.