You might be aware that Taiwan is one of the biggest chipmakers in the world thanks to companies such as TMSC and others being based in the country. This also means that the companies around the world have to get the supply of their chips from the Taiwanese companies. Out of all Taiwanese chipmakers, TMSC is one of the best which counts Huawei, Apple and others as their customers. Talking about TMSC, we know that the company supplies chips to Huawei from many years but that might come to an end soon.
This is because the US has opposed the supply of TMSC’s 14-nm chips to China’s Huawei. Now, we are well aware that the US is trying to make an influence inside Taiwan which is also a way to counter China. Also, we know that the US strongly dislikes Huawei and alleges that the company’s officials have a deep connection with the Chinese government. Also, they say that Huawei is a state-sponsored company and tracks its customers. It is also the reason why Huawei has been added to the blacklist by the US government which means they can neither sell their products nor work with the companies based out of the US.
Coming back to TMSC’s supply of 14-nm chips to Huawei, it is because of new US regulation which could limit the supply of products which have a maximum limit of 10% for the supply of products to Huawei which have US technology inside them. Currently, it is known that TMSC’s 7-nm technology does not have more than 10% US technology inside it so Huawei might not have any problem with its supply. However, the 14-nm chips exceed the 10% limit so Huawei could be in trouble if the regulations are set in place by the US. That being said, we know that these are just rumours and they might not come into action.