​Analysis | TSMC caught between hammer and anvil in Huawei case

The Nikkei first reported that TSMC will continue to proceed orders taken before the new ban if those chips could be shipped before mid-September

Huawei phones are displayed in this undated file photo amid reports that TSMC, a key Huawei supplier, will need to obtain a license to export some key products to the Chinese manufacturer in the future. (Shutterstock)

TAIPEI (The China Post) — Taiwan Semiconductor Manufacturing Co (TSMC) has stopped new orders from Huawei Technologies in response to Washington’s new regulations aimed at further limiting chip supplies to the Chinese company, according to various media.

The Nikkei first reported on Monday that the world’s biggest contract chip maker and a key Huawei supplier will still continue to proceed orders taken before the new ban if those chips could be shipped before mid-September.

Huawei declined to comment on the report while TSMC said it does not disclose order details, but analysts predict that the new restrictions will further put the Taiwan manufacturer between the hammer and the anvil.

The U.S. Commerce Department on Friday expanded U.S. authority to require licenses for sales to Huawei of semiconductors made abroad with U.S. technology, which could result in stopping tech exports to the world’s No 2 smartphone maker.

A day earlier, TSMC announced plans to build a U.S.-based plant, and on Friday added it was “following the U.S. export rule change closely.”