Taiwan Semiconductor Manufacturing Co. (TSMC) stopped taking new orders from Huawei in May and after mid-September will no longer ship computer chips to its No. 2 customer in compliance with US sanctions, the world’s largest contract chipmaker said, reported Caixin.
TSMC made the disclosure Thursday while reporting stronger-than-expected second-quarter earnings. Revenue rose 28.9% to NT$310.69 billion ($10.38 billion). Net profit jumped 81% year-on-year, thanks to demands from 5G networks.
In May the Trump administration toughened a 2019 trade ban that cut off Huawei from US suppliers, expanding restrictions to any of Huawei’s foreign chip-making partners whose production lines include US-made equipment. The expanded sanctions block Huawei from seeking alternative chip supplies through contractors like TSMC.
“We are complying fully with the new regulations and did not take any new orders from Huawei since May 15,” TSMC Chairman Mark Liu told an investors conference. He said the company has no plan to ship wafers to Huawei after Sept. 14.