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Guru3D.com » News » TSMC will no longer accept orders from Huawei Starting September

TSMC will no longer accept orders from Huawei Starting September

by Hilbert Hagedoorn on: 07/20/2020 08:25 AM | source: techpowerup | 53 comment(s)
TSMC will no longer accept orders from Huawei Starting September

Starting September 14 TSMC will stop accepting orders from Chinese company Huawei, leaving it without a partner to manufacture its chips.

This is due to the United States sales restrictions prevent selling all products manufactured with US patents to Huawei. TSMC currently manufactures the full range of products for HiSilicon, Huawei's subsidiary dedicated to chip design. This includes the Kirin chips used in the company's smartphones, and the new Kunpeng SOCs for desktop computers, so Huawei will be in serious trouble losing TSMC. Reuters just confirmed this information as well.

The Chinese giant will have to find who makes these SOCs, since they are a key part of its business, and according to industry sources, it would already be talking to SMIC, a semiconductor manufacturing company that uses 100% Chinese technology. However, SMIC only makes chips at 14nm, so it's not enough for the brand's top-performing products, and they will have to continue the search. The problem is that almost all the other companies in the field use US technology, so they are not enabled to sell to Huawei, leaving it in Checkmate.

It will be interesting to see what solution Huawei finds to this problem, or if it ends up reaching an agreement with the United States to get out of this complex situation. 







« PCB makers plan to integrate Mini-LED into laptops and televisions · TSMC will no longer accept orders from Huawei Starting September · Download: Display Driver Uninstaller (DDU) V18.0.2.7 »

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Cyberdyne
Senior Member



Posts: 3581
Joined: 2010-01-16

#5811091 Posted on: 07/21/2020 10:13 PM
China bullies other countries all the time. They have zero respect for intellectual property and patents.
Dozens, if not hundreds, of Chinese companies owe foreign companies untold amounts of money.
Their only limitation to what they steal is what they are able to manufacture. Since they manufacture so much, it happens far too often.
So I can see the appeal in targeting the few areas Chinese factories can't cover.

Alessio1989
Senior Member



Posts: 1901
Joined: 2015-06-11

#5811114 Posted on: 07/22/2020 12:34 AM
Can someone explain the "patent" excuse here? Makes no sense to me. TSMC is not allowed to sell to China because America told them not to, it sounds to me, and the patent thing is just some bullshit excuse to cover this foreign "do what we say or else" bullying order.

Maybe because TSMC is a Tawian company, and Taiwan was repeatedly threaten by PRC. The last time was when Taiwan openly side with pro-democracy and anti-PRC side of HK (yes, the same in the last elections won ~90% of seats and got 17 on 18 districts in HK).

Deleted member 213629
Unregistered



#5811131 Posted on: 07/22/2020 03:14 AM
Can someone explain the "patent" excuse here? Makes no sense to me. TSMC is not allowed to sell to China because America told them not to, it sounds to me, and the patent thing is just some bullshit excuse to cover this foreign "do what we say or else" bullying order.

Sure, on the 15th of May following orders from the US Department of Commerce TSMC halted processing of new orders with their 2nd largest buyer (1st being Apple) Huawei.

This comes following America's expansion of rules that now require business licenses for sales to Huawei specifically which employ American technology (patents). Thus far such a license has not been issued by the United States to TSMC

For now TSMC has a 3 month grace period to complete existing/past orders between themselves and Huawei.

Dribble
Senior Member



Posts: 182
Joined: 2019-01-18

#5811248 Posted on: 07/22/2020 03:15 PM
Maybe because TSMC is a Tawian company, and Taiwan was repeatedly threaten by PRC. The last time was when Taiwan openly side with pro-democracy and anti-PRC side of HK (yes, the same in the last elections won ~90% of seats and got 17 on 18 districts in HK).

Taiwan is only independent because America defends it, hence America tells Taiwan to do something to control Chinese power it's hardly gonna say no, both because they need America and because they want to limit Chinese power.

As for US vs China well the US is hardly the land of the free (unless you are rich and powerful) but it's not China who are currently chucking hundreds of thousands in concentration camps to be re-educated or killed, or crushing all resistance in Hong-Kong.

Alessio1989
Senior Member



Posts: 1901
Joined: 2015-06-11

#5811252 Posted on: 07/22/2020 03:40 PM
Taiwan is only independent because America defends it, hence America tells Taiwan to do something to control Chinese power it's hardly gonna say no, both because they need America and because they want to limit Chinese power.

As for US vs China well the US is hardly the land of the free (unless you are rich and powerful) but it's not China who are currently chucking hundreds of thousands in concentration camps to be re-educated or killed, or crushing all resistance in Hong-Kong.
I do not really care about US vs PRC nor I support anyone of them, this kind of "big-guy games" must end.
Taiwan is not a military dictatorship any-more, it's a democracy and I do not see way they should not have the right to exists
As for HK, there was a deal between UK and PRC for HK autonomy, PRC broke that deal creating this situation and increasing over 90% the population of HK that politically rejection against PRC in the last elections. If it wasn't for PRC economic power in a minute the entire UNO would be in HK declaring the independency of a new nation.

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