TAIPEI (Reuters) – Taiwan Semiconductor Manufacturing Co (TSMC) has made up its order book with other customers now that it’s lost China’s Huawei Technologies Co Ltd [HWT.UL], which is subject to U.S. sales restrictions, a minister said on Monday.
TSMC’s clients include Huawei’s chip division HiSilicon. However, the U.S. blacklisting of Huawei over security concerns and trade disputes with China has left the world’s biggest contract chipmaker exposed to diplomatic developments between two countries where it also has production bases.
Last month, the corporate unveiled plans for a $12-billion plant within the us just hours before the U.S. Department of Commerce outlined a proposal to amend chip export rules – a move that might restrict TSMC’s sales to Huawei.
The amendment would require licences for sales of semiconductors made abroad with U.S. technology to Huawei, the world’s biggest supplier of telecoms equipment and its second-largest smartphone maker.
Kung Ming-hsin, the new head of Taiwan’s economic planning agency, the National Development Council, said the us was taking aim at a selected company, not Taiwan’s economic relations with China, the island’s largest trading partner.
“The us has not asked Taiwan to chop off all ties with China. It’s aimed toward Huawei,” Kung told reporters in Taipei.
The main reason the us has targeted Huawei is because it had been not transparent and had too close a relationship with the Chinese government, he added, charges the corporate has denied.
“As for TSMC, although their orders not have Huawei, they’ve quickly been filled up, as people actually need them,” Kung said, without elaborating.
TSMC declined to comment, saying it didn’t discuss its customers.
The chairman of TSMC, a supplier to U.S. tech giants like Apple Inc, said this month the firm could quickly fill any order gap should U.S. curbs prevent sales to Huawei.