Home Business The United States is considering completely prohibit the suppliers to export chips to Huawei

The United States is considering completely prohibit the suppliers to export chips to Huawei

According to report ,The Trump administration is considering making changes to the US regulations, which will completely cut off the chip supply from the world’s major chip suppliers. Moreover, in order to hit  Huawei‘s own chip business, the Trump administration will also cut the supply of the foundries like TSMC.


In order to prohibit the suppliers to export products to Huawei, the US government will amend the Foreign Direct Product Rule. The rule is explicitly stipulates that products are manufactured overseas, but are based on certain U.S. technology, the products may subject to the rule.

Currently, most chipmakers rely on the equipments made by the US companies such as KLA, Lam Research and Applied Materials. Besides, a report notes that China does not have a single chip production line that uses entirely China-made equipments, so it would be difficult to do it without US equipments.

Previously, the US is trying to persuade its allies in the European Union not to use Huawei’s 5G equipment, and exclude Huawei from the domestic construction of 5G network. But many countries, including Germany and Britain, did not follow the suggestion. This time, the US wants to cut the chip supply, the first step is to cut the supply of TSMC. But Huawei accounts for nearly 10 percent of TSMC’s total annual revenue is from Huawei and Huawei is TSMC’s second-largest customer.

Read also:Huawei confirm that Huawei has no business dealings with “CIA-controlled” companies

Surge is the Founder of Hms Arena.he lives in China and knows about China's mobile phone market.


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