U.S. intends to increase sanctions, Huawei risk losing 14nm chip supply from TSMC

According to a report from Liberty Times, the new US sanctions on Huawei could threaten the supply of 14nm chips from TSMC to Chinese technology firms.

The Trump administration is preparing to limit the amount of U.S. technology or components in Huawei’s products not to exceed 10%, instead of the previous 25% limit. If new limits are imposed, TSMC production will be affected.

Of the chip technologies that TSMC is manufacturing, the 7nm chip process contains only 9% of the American technology or component content, so the supply will be no problem. However, for 14nm process chips, the U.S. technology content is up to 15%. Therefore, if a new limit is applied, TSMC may not be able to supply Huawei’s 14nm chips anymore.

When asked to comment on the new limit, TSMC said that the US government has not yet changed its regulations. In addition, the company did not respond to possible situations in the future.

In the event that the United States continues to implement this plan, Huawei may be forced to choose either to buy 14nm chips from Chinese SMIC manufacturer (Semiconductor Manufacturing International Corporation) or move all of its products to advancements. process of 7nm or 5nm new TSMC.

Refer to Taiwannews