TSMC CAN STILL DO BUSINESS WITH HUAWEI, ASIA TIMES CLAIMS
Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, will get US government approval to ship processors for common consumer electronics designed by embattled Chinese telecom giant Huawei Technologies despite a general ban against Huawei that took effect in September, analysts believe, Ralph Jennings wrote for Asia Times.
US regulators are expected to let TSMC sell chips made with older technology for personal computers and 4G smartphones – items that Washington considers a low security threat, tech experts say. But they are expected to stop TSMC from selling Huawei chips for server processors and 5G base stations.
“I suspect that the US government allowing any sort of business with Huawei really depends on the type of product,” said Yao Tse-yong, a former buy-side equities analyst who follows TSMC. “In particular, I think the US is most concerned about Huawei's telecom business. But things like laptops or servers, which are deemed less of a competitive threat, might get through.”
TSMC could probably qualify to sell semiconductors made with its older lithography processes, said Brady Wang, an analyst in Taipei with the market intelligence firm Counterpoint Research. The 16-nanometer process, for example, would help Huawei and its semiconductor subsidiary HiSilicon Technologies build consumer electronics. “I think things related to wearables and IoT, that stuff will open up, even if they do things for smartphones, eventually those things will open up,” said Mario Morales, a program vice president with market research firm IDC in the US.