The ongoing face-off between Huawei and the US Department of Commence is not coming to an end anytime soon. According to Reuters, The United States have drafted a proposal which will stop TSMC from manufacturing Huawei’s Kirin chipsets.
TSMC, a Taiwan-based company is the world’s largest contract chipmaker and they use manufacturing equipment made in the US. High-level US meetings will be happening this week and next week with one of the key talking points being placing stiffer restrictions on Huawei.
The proposal aims to make companies such as TSMC get license approval from the US before doing business with Huawei. Speaking on the development, a US Department of Commerce spokesman said the recent charges against Huawei “reaffirm the need for caution in considering license applications. The U.S. continues to have major concerns about Huawei.”
The United States thinks its equipment could be used by China for spying and is trying to exclude its gears from next-generation 5G networks since Huawei is a Chinese company.
If the proposal is approved, it will be a major blow to TSMC and to Huawei. Top chipset manufacturers depend on US-made equipment. It is believed every production line in China cannot do without equipment produced by the US.