Bad News For Huawei: TSMC Reduces Chip Production


The Trump government, which has been trying to push Huawei into every corner with the claim that it has been doing cyber agency activities in the name of China, has started to press on foreign companies that are now using US goods after the US companies.

After the Trump government restricted the supply of US firms to Huawei, it was time for foreign firms using US goods. The sector’s giant TSMC is in the first place.


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It was on the agenda that TSMC, the industry leader in chip casting, has been under pressure by US officials for a while. The Trump government has announced that foreign companies using at least 10 percent of US equipment in their equipment must obtain a license to supply Chinese manufacturers. TSMC has around 12 percent of US equipment in the 7nm process.

According to sources, TSMC started to reduce the supply of casting to Huawei due to pressure. Huawei was producing high-end Kirin processors in the 7nm process. In this regard, it will be inevitable to experience problems in 7nm Kirin processors in the near future. It is stated that the 10nm and 14nm equipments are 10 percent below the rate of US goods. This level may not be a problem.

No explanation has been made by Huawei, but Ascend produces TSMC artificial chips, as well as Kirin chips. It is a question of wondering how the company will find a solution to the new edition.