Taipei, June 9 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC) said Tuesday that several customers have expressed interest in filling the void that would be left by Chinese telecom equipment giant Huawei Technologies Inc. if the United States further tightens sanctions on the Chinese firm.
At an annual general meeting held Tuesday, TSMC Chairman Mark Liu (劉德音) said several customers have indicated a willingness to purchase more of the chipmaker's production capacity, which could fill the gap left by Huawei, amid the on-going trade war between Washington and Beijing.
Liu made the comments as shareholders expressed concern about the impact of losing Huawei as a customer following Washington's sanctions. HiSilicon, a wholly owned IC design unit of Huawei, accounted for 14 percent of TSMC's total sales in 2019, according to IC Insights.
"TSMC is building itself into a contract chipmaker to serve clients worldwide," Liu said. "TSMC faces challenges arising from the on-going trade war but, the company is boosting its value and is looking for solutions to overcome hurdles."
In mid-May, the U.S. Department of Commerce (DOC) announced it was planning to tighten export rules to restrict companies like TSMC selling chips to Huawei.
According to the DOC, the Bureau of Industry and Security (BIS) is revising its foreign-produced direct product rule and the Entity List, which will "narrowly and strategically target Huawei's acquisition of semiconductors that are the direct product of certain U.S. software and technology."
The DOC announcement came just hours before TSMC announced a plan to invest US$12 billion to build an advanced wafer foundry in Arizona. However, Keith Krach, the U.S. undersecretary for economic growth, energy and the environment, said TSMC was not given any assurances it would obtain a license to sell its chips to Huawei.
Even if TSMC loses orders from Huawei, it is expected to receive more orders from existing clients and even smartphone makers to make up the losses from the Chinese telecom equipment supplier.
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