The Trump administration has proposed a new prohibition on Huawei Technologies. That blocks semiconductor shipments to the Chinese company from global chipmakers, which could escalate tensions with China. Also Read - Huawei P40 Lite 5G with Kirin 820 SoC, quad-camera setup announced
According to Reuters, the United States Department of Commerce has introduced a new regulation that will require the application of licenses to those semiconductor manufacturers who use the machinery of American origin. Also Read - Huawei Watch GT 2e with SpO2 monitoring, two weeks battery life launched in India: Price, Features
As TSMC is one of them, it will now have to ask the United States for permission of semiconductor shipments. If it does not, it could face sanctions from the country that limit its export capacity. This will also affect its freedom to buy new machinery and equipment. Also Read - Huawei Freebuds 3 with noise cancellation and wireless charging launched in India: Price, Features
A senior official at the United States Department of Commerce said in a statement. “This action puts the United States first, the American companies first, and America’s national security first.”
The new regulations are effective as of today but have a 120-day grace period. TSMC, which plans to open a semiconductor manufacturing plant in the State of Arizona, United States, has said that it is studying the legal impact of this new measure with its attorneys and will soon adopt the necessary changes to comply with it.
China’s Retaliation in response to Huawei restrictions
China has also confirmed that it is prepared to take appropriate action against American giants of the caliber of Apple, Cisco Systems, and Qualcomm. This could impose heavy restrictions and put it on the country’s blacklist. It has also threatened to suspend the purchase of aircraft from Boeing.
It is clear that a major trade war is looming between the United States and China. And Huawei has had the bad luck of being in the middle. The company has played its cards very well, which has allowed it to become a global technology giant that is ready to lead the transition to 5G.