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U.S. Attempting to Restrict TSMC Sales to Huawei

posted by Fnord666 on Sunday March 29 2020, @03:55PM   Printer-friendly
from the Free-market dept.

takyon writes:

US poised to restrict TSMC's chip sales to China's Huawei

The United States has been aiming to curb the supply of chips sold by contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) to China's Huawei Technologies Co. through planned heavier sanctions against the Chinese telecom equipment giant, according to a Reuters report.

The report said while tensions between Washington and Beijing have been escalating with both sides blaming each other for spreading the novel coronavirus disease (COVID-19), the Trump administration has a plan to introduce new measures to further restrict global chip sales to Huawei.

Under the proposed new rules, the report, dated Thursday (March 26) in Washington, said foreign companies that use U.S. production equipment to roll out their chips would be required to obtain a U.S. license ahead of sales of certain chips to Huawei, which was blacklisted last year.

Boon for Apple, AMD, Nvidia, etc. or a disaster in the making?

Also at Tom's Hardware.

See also:
AMD is set to become TSMC's biggest 7nm customer in 2020
Report: TSMC's Reducing Its Reliance on Huawei Amid US Government Scrutiny

Related:
AMD Says TSMC Can Meet Epyc Demand; Launches New, Higher-Clocked 64-Core CPU
How China Plans to Lead the Computer Chip Industry

Original Submission

 
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  • (Score: 2) by Mojibake Tengu on Sunday March 29 2020, @08:12PM (2 children)

    by Mojibake Tengu (8598) on Sunday March 29 2020, @08:12PM (#977016) Journal

    If TSMC uses an U.S. technology for critical production operation, why not Intel, to be competitive at least?
    Fact: Intel has no adequate technology.
    Therefore, it is very probable TSMC does not actually use U.S. technology for critical production operation.
    Another thing is sure: if such restriction ever succeeeds, Huawei will begin to fab their own chips sooner or later. Is this what TSMC wishes to happen, in their long term strategy? Very probably, not.

    That opens some new problems:
    What prevents TSMC expanding to mainland to get a jurisdiction shelter?
    Whomever actually sits on said technology, what prevents a transfer of it directly to Huawei? Money is powerfull...

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  • (Score: 2) by HiThere on Sunday March 29 2020, @10:19PM

    by HiThere (866) Subscriber Badge on Sunday March 29 2020, @10:19PM (#977038) Journal

    Well, *someone* friendly to China with a raft of money behind them will begin fabbing chips that Chinese companies can use. The names and companies are temporary, and Huawei may not have any control (though they'll have a lot of input).

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  • (Score: 2) by exaeta on Monday March 30 2020, @02:15PM

    by exaeta (6957) on Monday March 30 2020, @02:15PM (#977207) Homepage Journal
    What if TSMC just ignores the sanction? Or better yet, TSMC should play hardball with the US, refuse to sell chips to United States companies until the sanction is lifted.
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