Huawei China Statement TSMC US Govt

Huawei has finally responded to the latest move by the Trump administration in regard to the trade ban. This seems a war between the US government and China as it specifically targets Huawei. The latter has been accused of spying that is why it is not allowed to do major business and sell phones in the country. There are plenty of American firms that have ties with the top Chinese OEM but have been forced to enforce limits and get licenses to continue the business.

A year later, nothing has changed. Huawei is still banned. However, China is now believed to retaliate against US companies over continuing the Huawei ban. We also shared earlier that the US government would remove Huawei from the list of global chip suppliers.

As an immediate result, TSMC stopped getting orders from Huawei. The Taiwan-based company uses US equipment and they’ve been asked to get a license from the US government. Guo Ping, Huawei’s rotating chairman, has finally said something about the issue: “We still haven’t figured it out. The US government still persists in attacking Huawei, but what will that bring to the world?”

An official statement was made public: “In its relentless pursuit to tighten its stranglehold on our company, the US government has decided to proceed and completely ignore the concerns of many companies and industry associations. This decision was arbitrary and pernicious, and threatens to undermine the entire industry worldwide. This new rule will impact the expansion, maintenance, and continuous operations of networks worth hundreds of billions of dollars that we have rolled out in more than 170 countries.”

This isn’t just about China or Huawei. Many companies all over the world will be affected as well. While a solution may be provided by Huawei, other suppliers may not be as resilient. TSMC’s decision to halt orders from Huawei is a big move. There is no official announcement yet but we won’t be surprised if it takes effect anytime soon.

There is a possibility Huawei may switch to Samsung. That or Huawei will simply rely on local production with SMIC (Semiconductor Manufacturing International Corporation). It has actually started to produce the Kirin 710A processor for HiSilicon.

Huawei’s official statement also reads: “This decision by the US government does not just affect Huawei. It will have a serious impact on a wide number of global industries. In the long run, this will damage the trust and collaboration within the global semiconductor industry which many industries depend on, increasing conflict and loss within these industries. The US is leveraging its own technological strengths to crush companies outside its own borders. This will only serve to undermine the trust international companies place in US technology and supply chains. Ultimately, this will harm US interests.”

The Huawei-China-US story has been in development for the past few years. We’re looking forward to how this will progress and eventually end. Cross your fingers.