Chinese telecommunications firm Huawei is shifting production of its in-house designed chips away from a major Taiwanese chipmaker.
Details:ย The Shenzhen-based telecommunications company is moving its chip production towards Shanghai-based Semiconductor Manufacturing International Corp (SMIC) from Taiwan Semiconductor Manufacturing Co Ltd (TSMC), said a report by Reuters, citing sources familiar with the matter.
- HiSilicon, their chip design subsidiary, has already started telling its engineers to design for SMIC instead of TSMC in late 2019, according to one of Reuters’ sources.
- The company said in a statement the shift was โcommon industry practiceโ and that the company โconsiders carefully issues such as capacity, technology and delivery when choosing semiconductor fabrication plants.โ
Context:ย A federal ban by the Trump administration last Mayย barredย American companies from exporting components and technology to Huawei without government approvals.
- The Trump administration is considering to expand the ban to more foreign companies that use US technology, including Taiwanโs TSMC.
- Huaweiย warnedย last month of retaliation by the Chinese government if the US ban upgrades.
- โThe Chinese government will not just stand by and watch Huawei be slaughtered on the chopping board,โ Eric Xu, Huawei rotating chairman, said at a press event last month.
