Mobile Phone News
TSMC gets license allowing it to ship chips to Huawei; however, there is a major caveat
In May 2019, the U.S. Department of Commerce added Chinese manufacturer Huawei to its list of institutions for security purposes. This prevents Huawei from accessing its U.S. supply chain to purchase software and hardware. Exactly one year later, Huawei tightened its grip by requiring any factory that uses US-based technology to obtain a license before shipping more goods to Huawei.
TSMC is allowed to ship chips to Huawei; There is a key caveat
Mature process nodes are believed to include 28nm and above. Advanced process nodes not reported to be licensed to TSMC include 16nm, 10nm, 7nm and the latest 5nm nodes. So in other words, in terms of its phones and networking devices, this license does not really help Huawei. AMD and Intel have also been authorized to work with Huawei. But without the ability to have 9000 chips of 5nm of milk in inventory, things would be much better for the manufacturer.
Huawei ordered 15 million Kirin 9000 SoC from TSMC but managed to get only 8.8 million from these chips. This gives the company an inventory of about six months before the required and most powerful chip expires. Sources say the Commerce Department does not expect Huawei to completely block the supply of semiconductors. But a Huawei company should find out about the current ban that prevents them from getting high-performance chips.
Revenue for the third quarter was 84.488 billion yuan (US $ 73.9 million), up 14.7 percent year-on-year and up 21.65 percent year-on-year. That figure set a new single-quarter record in the fourth quarter of last year.
Huawei Brass can hope that a new administration will win the upcoming U.S. election and reverse the orders that have plagued Huawei today. But with less than 30 days to go before the election, even a big change will not happen immediately, and Huawei will not be able to get back to its 5nm milk chip.
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