TSMC Still Reviewing Increased Export Restrictions on Huawei
The Taiwan Semiconductor Manufacturing Company declined to say whether it has stopped processing new orders for Huawei and said it is still reviewing new U.S. export restrictions issued last week (see 2005150058). In a statement, a TSMC spokesperson said the company does not comment on details relating to customer orders but said it has “always complied with the law. The company said it has hired outside counsel to “conduct legal analysis and ensure a comprehensive examination and interpretation” of the new restrictions. “The semiconductor industry supply chain is extremely complex,” the spokesperson said. “TSMC is following the U.S. export rule change closely.”
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The company has reportedly halted all new orders for Huawei (see 2005180032) days after the Commerce Department expanded export restrictions to require a license for certain foreign-made shipments to Huawei. Hours before the rule was released, TSMC announced plans to build its first U.S.-based chip factory in Arizona (see 2005150033). The spokesperson declined to say whether the company knew about the rule before agreeing to build the factory, and the State Department said it has made no guarantees to TSMC of approving potential export licenses to Huawei. In its most recent annual report, TSMC said 60% of its revenue comes from North America and 20% comes from China.