It is reported that TSMC stopped accepting orders from Huawei after implementing new export controls in the United States

According to the Nikkei Asian Review, the world ’s largest contract semiconductor manufacturer, Taiwan Semiconductor Manufacturing Company, has stopped obtaining new orders from Huawei Technologies, one of its largest customers. The report stated that the decision was to comply with the new US export control announced on Friday which would make it more difficult for Huawei to obtain chips produced using US technology, including manufacturing equipment.

If shipments can be made before September 14, orders that have already started production or have been put into production before the ban takes effect will not be affected. Huawei is the second largest customer of TSMC after Apple. TSMC manufactures many advanced chips used by Huawei, including smartphones.

The US Department of Commerce released a new order on Friday, specifically for Huawei, because it made it more difficult for Huawei to use US software and technology to manufacture chips.

On the same day as the Ministry of Commerce announced, TSMC said With the support of the US federal government, TSMC will open a new $ 12 billion advanced chip foundry in Arizona. Once opened, the plant will allow more TSMC's US customers to manufacture its chips domestically.

TSMC's announcement came after the Wall Street Journal reported that White House officials were discussing with TSMC and Intel to establish a foundry in the United States.

A TSMC representative told TechCrunch in an email that the company did not disclose the customer ’s order details, thereby reducing its dependence on Asian factories and international supply chain factories. She added that TSMC complies with laws and applicable regulations, and “closely follows changes in US export rules”, and “closely cooperates with external consultants to conduct legal analysis and ensure a comprehensive review and interpretation of these rules.”

National security has imposed the latest restrictions on Huawei. Together with ZTE, in 2012, the House Intelligence Committee identified Huawei as a potential threat to security.

The two companies denied these allegations, but under the leadership of the Trump administration, the US government ’s efforts to stop both parties from conducting business with US companies have been strengthened. According to a report in the Nikkei Asian Review, Huawei expects the US Department of Commerce to obtain new orders and has established a year-long chip inventory for its telecommunications equipment.

TechCrunch has contacted Huawei to seek its opinions.

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