TSMC to cease business with Huawei following U.S. order

TSMC to cease business with Huawei following U.S. order”

After Google complied with the USA restrictions, Huawei can no longer build smartphones with the Google Play Store and has to build its own alternative, which will take a long time to win people's hearts.

Speaking further on the developments, Huawei issued a statement saying the company "categorically" opposed amendments from the US Department of Commerce to foreign direct product rules targeting the company.

The US' order, which will come into effect from September, blocks companies from using American-made software or hardware to make chips for Huawei and its affiliates. "This will only serve to undermine the trust global companies place in USA technology and supply chains", Kelly said. HUAWEI says the action will have a serious impact on a wide range of global industries. Huawei has denied the allegations.

Huawei is still assessing the potential fallout of the latest restrictions and couldn't predict the impact on revenue for now, Guo said.

Following the US government's announcement that would further thwart Huawei's chip-making capability, the Chinese telecoms equipment giant condemned the new ruling for being "arbitrary and pernicious".

Guo Ping emphasised in a press conference this morning that "survival is the key word for us at present" as he answered questions at an event supposed to show off how American sanctions haven't really affected Huawei. The statement finishes with Huawei confirming that the company expects an impact on their business but that, nevertheless, they will try to find solutions.

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Huawei has few alternatives if Washington refuses to allow its suppliers to use US technology. Following the US' extension of its sanctions on Huawei, new reports of China considering responding in kind has surfaced again.

TSMC, the world's biggest chipmaker has apparently halted new orders from Huawei due to tighter U.S. export controls. "Ultimately, this will harm USA interests", Huawei said in a statement, adding that the decision was "arbitrary and pernicious, and threatens to undermine the entire industry worldwide".

"It will damage the trust and collaboration within the global semiconductor industry and could increase conflict and loss within these industries", it said.

Chinese electronics company Huawei's future looks bleaker than ever. Samsung would likely be subject to the same U.S. government regulations, and China's SMIC (Semiconductor Manufacturing International Corporation) is far behind the TSMC when it comes to manufacturing capacity and technology.

Nevertheless, in its relentless pursuit to tighten its stranglehold on our company, the United States government has chose to proceed and completely ignore the concerns of many companies and industry associations.

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