TSMC stops new Huawei orders after U.S. restrictions: Nikkei

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FILE PHOTO: A logo of Taiwan Semiconductor Manufacturing Co (TSMC) is seen at its headquarters in Hsinchu, Taiwan August 31, 2018. Picture taken August 31, 2018. REUTERS/Tyrone Siu/File Photo

(Reuters) – Taiwan Semiconductor Manufacturing Co Ltd has stopped new orders from Huawei Technologies [HWT.UL] in response to Washington’s move aimed at further limiting chip supplies to the Chinese company, the Nikkei reported on Monday, citing multiple sources.

The orders which TSMC took before the new ban and those already in production are not impacted and could continue to proceed if those chips could be shipped before mid-September, according to the report. (s.nikkei.com/2WHFA3r)

TSMC, the world’s biggest contract chipmaker and a key Huawei supplier, had announced plans to build a U.S.-based plant on Thursday and on Friday added it was “following the U.S. export rule change closely”.

A new rule, unveiled by the U.S. Commerce Department on Friday, expands U.S. authority to require licenses for sales to Huawei of semiconductors made abroad with U.S. technology, vastly expanding its reach to halt exports to the world’s No. 2 smartphone maker. [nL1N2CX0P3]

Huawei declined to comment, while TSMC said it does not disclose order details and added the report was “purely market rumour”.

Reporting by Shubham Kalia in Bengaluru; Editing by Shounak Dasgupta

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