Huawei has received a new blow, after the world's largest chip maker announced that it needs US approval to sell critical semiconductor parts to Huawei.
According to ArabiaNet, the manufacturer's chairman, Mark Liu, told shareholders that TSMC Taiwan may not deal with Huawei unless Washington provides a special exemption .
This seriously harms the supply chain for Huawei, which found itself in the midst of a deep diplomatic row between Washington and Beijing, and last month, America announced controls on companies that use American equipment To provide Huawei with microchip technology amid fears that the Chinese Communist system may use it to eavesdrop on the West.
The new US Department of Commerce rule states that companies that manufacture or design Huawei equipment chips need a license within 120 days to use an American toolkit.
Trade Minister Wilbur Ross cautioned when announcing that the United States would strictly apply this rule, and would continue any attempts to circumvent its controls.
This new rule creates a problem for companies like TSMC, which have valuable production facilities and customers in both the United States and China, and the company has significantly more customization within The United States, where customers include Apple and Qualcomm.
Companies like TSMC may seek to exploit vulnerabilities by introducing brokers into their distribution channels to Huawei, however Liu has suggested that this would not be an option, His company seeks to avoid potential catastrophic sanctions.
Instead, the company will apply for an exemption from the US Department of Commerce once the consultation period for the new rule expires in July.
