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TSMC confirms that it is taking no new orders from Huawei

TSMC has stated it is complying with the latest U.S. export regulation. (Source: TSMC)
TSMC has stated it is complying with the latest U.S. export regulation. (Source: TSMC)
The Taiwan Semiconductor Manufacturing Company (TSMC) supplies the silicon on which many OEMs' SoCs or devices are based, Huawei's included. However, the current US administration has issued an executive order that prevents the latter from conducting this kind of business. TSMC has stated that it is complying with the directive.
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TSMC has reportedly suspended all business with the electronics giant Huawei. This move has been made in order to comply with new and stringent trade regulations that prevent US and (more recently) non-US companies doing business with this company.

Accordingly, TSMC will not fulfill orders of chips to Huawei's specifications that were placed on May 15, 2020 or later. Therefore, the smartphone maker will see its last shipment from the Taiwanese silicon contractor on or after September 14 of the same year.

TSMC investors and fans may worry about the void that the sudden absence of this business may have created - Huawei had been a major trading partner of this company's, after all. However, its chairman, Mark Liu, has said it is "progressing relatively well" in attracting new orders that will take up the excess left in its inventory.

The chip-maker had been projected to earn third-quarter (3Q2020) revenues of about US$10.7 billion. However, it now estimates that it might make up to $11.5 billion for the same period instead. It had also predicted it would make about 20% more in 2020 compared to the preceding year, mainly based on the enthusiasm for 5G-capable chipsets from OEMs that it saw coming.

Now, TSMC asserts that it is still on track to make this growth, Huawei orders or no. Furthermore, it now intends to raise its capital investment level by an additional $1-2 billion, or a possible total of $17 billion, in 2020.

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Deirdre O'Donnell
Deirdre O'Donnell - Senior Tech Writer - 4345 articles published on Notebookcheck since 2018
I became a professional writer and editor shortly after graduation. My degrees are in biomedical sciences; however, they led to some experience in the biotech area, which convinced me of its potential to revolutionize our health, environment and lives in general. This developed into an all-consuming interest in more aspects of tech over time: I can never write enough on the latest electronics, gadgets and innovations. My other interests include imaging, astronomy, and streaming all the things. Oh, and coffee.
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> Notebook / Laptop Reviews and News > News > News Archive > Newsarchive 2020 07 > TSMC confirms that it is taking no new orders from Huawei
Deirdre O'Donnell, 2020-07-18 (Update: 2020-07-18)