Huawei phones use chipsets made by the Taiwanese TSMC. In the United States, a scheme is currently in place to curtail the supply of chipsets by the Taiwanese TSMC. American software for production is the basis.
* Update 18-05 at 2.10 pm: According to Nikkei, the Taiwanese chipmaker TSMC has stopped accepting new orders from Huawei in response to the new restrictions. According to multiple sources from the website, the decision was difficult for TSMC, as Huawei is the company’s second-largest customer. All Kirin processors designed by Huawei subsidiary HiSilicon have so far been manufactured by TSMC. In addition to mobile processors, Huawei also depended heavily on TSMC for its AI processors and network chips.
Huawei said in a response to The Verge: “In its relentless pursuit of strangling our company, the US government has decided to continue and completely ignore the concerns of many companies and industry organizations. This decision is arbitrary and harmful, threatening to undermine the entire industry worldwide, as this decision has implications for the expansion, maintenance and continued operation of hundreds of billions of dollars in networks we have deployed in more than 170 countries. ”
* Update 18-05 at 2.30 pm: Below you will find the statement regarding the shutdown of chip production by TSMC from Huawei Belgium.
There are only a few (large) chip manufacturers worldwide, called semiconductors. TSMC is one of the largest and best-known suppliers. The Taiwanese company supplies chips to Huawei subsidiary HiSilicon, among others, which designs Kirin chips for Huawei phones. The US is said to have an arrangement that could potentially block TSMC deliveries, leaving Huawei with no chips to manufacture phones and servers. The trade department wants to prevent Huawei from using American technologies, after all, the department said on Friday.
The Taiwanese TSMC may no longer be able to supply chips to the Chinese Huawei
The scheme prohibits semiconductors using US software from supplying to Huawei. The arrangement leaves room for applying for licenses that make it possible to trade with Huawei after all. Microsoft and Google previously applied for such a license, after which Microsoft was promised the license. According to The Wall Street Journal (WSJ), the US trade department could also block the delivery of TSMC. It is unknown whether the Taiwanese semiconductor uses American software.
If TSMC uses US software, it may deliver to the Chinese smartphone manufacturer for the next 120 days. After this period, the semiconductors must submit a license application to the US trade department. The new measure says the US is preventing the undermining of the Entity List. “We need to adjust our rules exploited by Huawei and HiSilicon and prevent American technologies from enabling malicious activities that conflict with the interests of US national security and foreign policy,” said the trade department.
Huawei supplies the P40 series without Google Play Services, because of the Entity List
China has since responded to actions from the US, Reuters said. If the US persists with the trade blocks, US companies will be placed on an ‘unreliable entity list’. Furthermore, China is said to impose blockades on Apple, Cisco, and Qualcomm, who have stationed their production in China. Finally, China plans to stop purchasing new Boeing aircraft. It is unknown whether China would actually implement these measures or whether it is attempting to push back the US trade department, as it has previously attempted.
Huawei has been on the US Entity List for one year, along with 114 parties that are closely associated with the manufacturer. Since then, it has been banned from selling Android phones with the Google Play Store, forcing it to set up its own AppGallery. Huawei was recently told that it will be linked to the Entity List until at least 2021. In the US, Huawei is suspected of spying on citizens via cell towers. To date, no evidence has yet been provided for this; in the UK, Huawei has even been labeled ‘safe’ for use in future 5G networks.