Taiwan Semicoductor Taking No New Orders From Huawei: Report

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  • Taiwan Semiconductor Manufacturing Company (TSMC) has recently shown intentions to start a semiconductor facility in the US
  • The US government has banned China-based Huawei from doing business in the country

The world’s largest contract chipmaker has stopped taking any new orders from China-based Huawei. A report published by the Nikkei Asian Review stats that these developments are a result of tighter U.S. export controls aimed at limiting the Chinese company’s access to crucial chip supplies

It is to be noted here that the U.S. Commerce Department had announced some new mandates last Friday. These mandates require all non-US chip makers using America-made equipment, intellectual property or design software to apply for a license before shipping any chips to Huawei.

Interestingly, Huawei is among the top five customers of TSMC. In fact, most of Huawei’s flagship smartphones come powered by chips manufactured at TSMC’s facilities.

TSMC has shown intention to build a semiconductor facility in USA

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TSMC had recently announced its intention to build and operate an advanced semiconductor fab in the United States with the mutual understanding and commitment to support from the U.S. federal government and the State of Arizona. This facility, which will be built in Arizona, will utilize TSMC’s five-nanometer technology for semiconductor wafer fabrication, have a 20,000 semiconductor wafer per month capacity, create over 1,600 high-tech professional jobs directly, and thousands of indirect jobs in the semiconductor ecosystem.

Construction is planned to start in 2021 with production targeted to begin in 2024. TSMC’s total spending on this project, including capital expenditure, will be approximately US$12 billion from 2021 to 2029.

“This U.S. facility not only enables us to better support our customers and partners, it also gives us more opportunities to attract global talents. This project is of critical, strategic importance to a vibrant and competitive U.S. semiconductor ecosystem that enables leading U.S. companies to fabricate their cutting-edge semiconductor products within the United States and benefit from the proximity of a world-class semiconductor foundry and ecosystem,” TSMC had informed earlier.

In the United States, TSMC currently operates a fab in Camas, Washington and design centers in both Austin, Texas and San Jose, California. The Arizona facility would be TSMC’s second manufacturing site in the United States.

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