The Trump administration moved to block shipments of semiconductors to Huawei and the reaction from China was swift, with a report saying it was ready to put U.S. companies on an ‘unreliable entity list’
A new rule, unveiled by the Commerce Department and first reported by Reuters, expands U.S. authority to require licenses for sales to Huawei of semiconductors made abroad with U.S. technology, vastly expanding its reach to halt exports to the world’s No. 2 smartphone maker.
TSMC said on Friday it is “following the U.S. export rule change closely” and working with outside counsel to “conduct legal analysis and ensure a comprehensive examination and interpretation of these rules.” Washington lawyer Kevin Wolf, a former Commerce Department official, said the rule appeared to be a “novel, complex expansion of U.S. export controls” for chip-related items made with U.S. technology abroad and sent to Huawei. But he stressed that chips designed by companies other than Huawei and manufactured with U.S. technology could still be sold to the company without the license requirement.
Huawei, which needs semiconductors for its smartphones and telecoms equipment, has found itself at the heart of a battle for global technological dominance between the United States and China, whose relationship has soured in recent months over the origins of the deadly coronavirus.
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