The head of Taiwan Semiconductor Manufacturing Company (TSMC) warned major customer Huawei could be barred from accessing its components following a recent US move to close a loophole around its trade blockade on the Chinese vendor, The Telegraph reported.
At TSMC’s AGM earlier this week, chairman Mark Liu said the latest US rules would require his company to apply for a licence to continue supplying Huawei, meaning supplies could be cut off if the approval was not granted. While expressing hope it would not be prevented from doing business with the vendor, Liu noted the component maker could quickly fill any resulting shortfall in sales, the newspaper wrote.
Analysts estimate Huawei’s chip division HiSilicon accounts for between 13 per cent to 15 per cent of TSMC’s revenue. On a regional basis, 60 per cent of its sales come from the US, with 20 per cent from China.
Liu said it was unlikely the company would seek ways around the new rules, which require non-domestic companies providing components using US technology to Huawei to have a licence.
The company already halted new chip orders from Huawei. Current and pending orders booked before the new rules were announced won’t be affected, provided they are fulfilled within a 120-day timeframe set by the US Department of Commerce.
Shortly after the new US restrictions were announced, TSMC unveiled plans to build a $12 billion semiconductor factory in the US.Subscribe to our daily newsletter Back