TSMC has apparently replaced all of the canceled Huawei orders, according to a new report. The world’s largest contract chipmaker was the primary chip supplier of the Chinese tech giant but had to stop supplying the OEM due to recent US sanctions.
Huawei was a major client of TSMC, and losing this customer also implied losing a big chunk of their revenue. But it seems that TSMC has already replaced all o its canceled Huawei orders. The news from Kung Ming-hsin, the new head of the Taiwanese Economic planning agency, who revealed that the US sanctions weren’t to disrupt relations between Taiwan and China, but only aimed at Huawei.
Editor’s Pick: Huawei led the China’s Wearable Market in Q1 2020, followed by Xiaomi and Apple
Furthermore, he said that “As for TSMC, although their orders no longer have Huawei, they’ve quickly been filled up, as other people really need them.” The chairman of the contract chipmaker also backed this up by stating that there is ample demand from other companies that will quickly fill up the gap. Notably, the company is currently mass producing its latest 5nm chips for its various clients including Apple.
Kung stated that the reason for Huawei being targetted is due to possible ties with China’s government, although there are those that argue otherwise. While Huawei will face issues after the loss of its chip supply, the company is heavily investing in local sources and other non-US supply chains.
UP NEXT: Apple will launch AirPods 3 in the first half of 2021, design similar to AirPods Pro: Ming-Chi Kuo
