The US administration restrictions imposed on the tech companies headquartered in China have affected the performance of the companies as well as their suppliers. With the US government putting a complete stop to TSMC from selling any components to Huawei, that uses American based technology. As a result, Huawei has been falling short in more than one way from its competitions.
The Taiwanese Semiconductor Manufacturing Company has stopped providing Huawei with semiconductors that are fabricated on high-end processing nodes.
But a recent rumour from mainland China suggests that TSMC has secured some relief from the US administration. And the company will be able to provide the fabrications based high-end processing nodes to the Chinese tech giant. But as for the nature of nodes, it is allowed to provide is not made clear as of yet.
Huawei took a major hit in its flagship smartphone production.
So the company might be looking to stage a major comeback with the supposedly resumed business with TSMC. However, sources suggest that the US Department of Commerce has granted TSMC the license for some products that the silicon fabricator can sell to the Chinese tech giant.
But this in no way would help the Chinese company to compete in the growing 5G market effectively. Additionally, sources also claim that the new license will certainly allow the company to recover some of the resources. However, it still won’t be enough to enable the Chinese tech giant to recover in the smartphone market.
We already know that the Taiwanese Semiconductor Manufacturing Company has invested almost $12 billion to set up a fab facility in Arizona. This was, however, suggested by the rumours as a condition set forth by the US administration to let the chipmaker continue its relationship with Huawei.
Whether these rumours are based on facts is not clear as of yet. However, with US administration finally showing giving some relief to the Chinese tech giant may hint at a hope for other semiconductor manufacturing companies like SMIC. What this new development means for the US-China scuffle, only time will tell.
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