Apple supplier TSMC suspends chip orders from Huawei

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On Friday the Chinese government threatened Apple and other American companies with retaliation over the US government treatment of Huawei. In specific the Chinese government is upset that the US was blocking semiconductor shipments from Huawei to American companies such as Apple.

This happened the same day that Apple chip supplier TSMC announced a new plant in Arizona, adding to the uncertainty of the whole “US-China saga.” Today, the Nikkie Asian Review reports that TSMC is now taking the action of Washington to heart. It reports that TSMC will halt all new orders from chips from Huawei, as per the report:

“TSMC has stopped taking new orders from Huawei after the new rule change was announced to fully comply with the latest export control regulation,” a person familiar with the situation said. “But those already in production and those orders which TSMC took before the new ban are not impacted and could continue to proceed if those chips could be shipped before mid-September.”

A source via the report says that it was a tough call for TSMC to make, but that it has to follow US law. When speaking to Reuters TSMC says it does not disclose market data but does however call the report “purely market rumor.” Apple now finds itself in an interesting position as an American company. While on one hand, it has to follow US law, it also needs to prevent a fallout with China.

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Sami started falling in love with Apple in 2010 with the iPhone 4S. As a registered developer, he deeply admires the world of Apple. Sami is an aspiring journalist, writer, and actor. He also has devoted his life to sharing his passion and knowledge with others around the world.