general news

TSMC has replaced lost Huawei orders, says Taiwan’s Minister

TSMC has replaced lost Huawei orders, says Taiwan’s Minister
TSMC has replaced lost Huawei orders, says Taiwan’s Minister

Approximately one month after Taiwan Semiconductor Manufacturing Co (TSMC) halted new orders from Huawei Technologies, a Taiwanese government minister announced that the chipmaker has offset lost business from China’s tech giant Huawei Technologies with other customers.

According to sources, Huawei's chip division HiSilicon was a major client of the Taiwanese chip marker. In the previous month, the company unveiled plans for a USD 12-billion plant in America just hours before the U.S. Commerce Department defined a proposal to alter chip export rules - a move that will restrict TSMC's business with Huawei. Later, the company stopped doing business with Huawei Technologies in response to U.S. sales restrictions.

The U.S. blacklisting of Huawei over spying allegations and the trade war with China have left the Taiwanese chipmaker exposed to diplomatic developments between two nations where the company has production bases.

Kung Ming-Hsin, the Head of Taiwan's economic planning agency, the National Development Council stated that the Trump administration was targeting a specific company, not Taiwan’s economic relations with China, the nation’s largest trading partner. America has not asked Taiwan to cut off all ties with China and it is aimed at only Huawei, Mr. Kung states.

He added the United States has been targeting Huawei due to its close association with the Chinese government and security concerns. As for the company, although it stopped doing business with Huawei, the chipmaker has offset lost business to China’s tech giant, Kung said.

Meanwhile, Taiwanese multinational chipmaker declined to comment on the matter, saying that it did not comment on its customers.

For the record, Taiwan Semiconductor Manufacturing Co is one of the largest semiconductor chipmakers in the world. The company is delivering its services to leading companies worldwide including tech giant Apple Inc. The company stopped taking new orders from Huawei in May due to new U.S regulations.

Source Credit - https://money.usnews.com/investing/news/articles/2020-06-22/taiwan-minister-says-tsmc-has-offset-lost-huawei-orders

About the author

Sunil Jha

Sunil Jha has been a part of the content industry for close to two years. Having previously worked as a voice over artist and sportswriter, he now focuses on writing articles for newsorigins.com, across a slew of topics, ranging from technology to trade and finance. With a business-oriented educational background, Sunil brings forth the expertise of deep-dive research and a strategic approach in his write ups.