TSMC Halts New Huawei Orders to Comply With U.S. Export Rules
TSMC stops accepting new chip orders from Huawei to follow strict new U.S. export controls targeting the Chinese tech giant. Existing orders remain unaffected if they ship before mid-September.
Taiwanese Semiconductor Manufacturing Co. (TSMC) stops taking new orders from Huawei to comply with new United States export controls. These regulations, announced recently, aim to prevent Huawei from obtaining chips produced using U.S. technology or manufacturing equipment. While new orders are officially halted, existing orders and those currently in production remain unaffected as long as they ship before September 14.
Huawei serves as TSMC's second-largest customer behind Apple, relying heavily on the foundry for advanced chips used in smartphones and telecom equipment. A TSMC representative declines to comment on specific customer details but confirms the company follows all applicable laws. The manufacturer states it is working closely with outside counsel to fully analyze and interpret the new U.S. export rule changes.
This move represents the latest U.S. government restriction against Huawei, citing ongoing national security concerns that date back to 2012. Interestingly, TSMC announces a $12 billion advanced chip foundry in Arizona on the exact same day the new export controls take effect. This new facility receives support from the U.S. government and aims to reduce American reliance on Asian semiconductor supply chains by allowing domestic fabrication for U.S. clients.