TSMC suspends supply to customer linked to Huawei: The Times of India

TSMC, the world’s largest contract chipmaker, has taken a bold stand by suspending supply to a customer after discovering its ties to Huawei, the Chinese tech giant. The decision comes amidst escalating tensions between the US and China, with Huawei being at the center of the trade war.

The customer in question has not been named by TSMC, but the move signals the company’s commitment to complying with US trade restrictions on Huawei. TSMC’s decision to cut ties with this customer underscores the growing scrutiny on companies with connections to Huawei, which has been blacklisted by the US government over national security concerns.

TSMC’s decision is likely to have far-reaching implications for the customer, as TSMC is a key supplier of advanced chips for a wide range of electronic devices. The move could disrupt the customer’s supply chain and potentially impact its ability to deliver products to market.

In a statement, TSMC emphasized that it is committed to following all relevant laws and regulations, and that it takes its compliance obligations seriously. The company’s decision to suspend supply to this customer underscores its commitment to upholding international trade norms and avoiding any association with entities that are subject to US sanctions.

As tensions between the US and China continue to escalate, companies like TSMC are finding themselves caught in the crossfire. The decision to suspend supply to a customer with ties to Huawei is just the latest example of how the tech industry is being impacted by the geopolitical tensions between the two superpowers.

It remains to be seen how this decision will impact the customer in question, but one thing is clear – TSMC’s actions send a strong message that compliance with US trade restrictions is non-negotiable. As the trade war between the US and China shows no signs of abating, companies will have to navigate carefully to avoid getting caught in the crosshairs.