Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, will be unable to supply chips to China’s Huawei Technologies in the fourth quarter as a result of the US ban, the company said on Thursday, reported Caixin.
TSMC stopped shipments to Huawei on Sept. 15 in compliance with the ban from the US Department of Commerce. The Commerce Department in May restricted global chipmakers that use US technology from supplying semiconductors to Huawei. The grace period for the restrictions ended mid-September, said Caixin.
Before US sanctions, Huawei was TSMC’s second-largest client, using its computer chips for Huawei’s high-end smartphones, base stations and servers.
Analysts said TSMC was able to offset its Huawei sales losses by reallocating production to other clients. Apple Inc.’s newly released iPhone 12 uses a TSMC-made A14 chip.