According to Reuters, the U.S. Department of Commerce is preparing to increase the proportion of U.S. intellectual property rights to "10% or higher" in 2020. It was previously impossible to increase the proportion of U.S. intellectual property rights from more than 25% to 10% to

According to Taiwanese media, because the Huawei Mate 30 series did not support Google GMS services, overseas sales were sluggish. TSMC believes that Huawei may have the risk of "overstock" in 2020, coupled with its own 7nm and 5nm production capacity constraints , Under the trade-off, TSMC said: "TSMC (TSMC) will significantly reduce its allocation of wafer production capacity (that is, HiSilicon CPU and related chip foundry) to Huawei (including HiSilicon) by 20% in 2020. TSMC's This move will undoubtedly have a huge impact on Huawei's chip business.

Image source: Sina Technology

At the same time, relevant news said that TSMC will stop OEMing 14nm for Huawei. Although Huawei is at the top of the world in terms of chip design, because Huawei does not. It does not have the ability to manufacture chips, so Huawei chips are also manufactured by TSMC. It is believed that TSMC has the best chip technology in the world. This time, the United States may implement export controls in the high-tech field in mid-January 2020. "10% U.S. source ban", the United States has once again strengthened the "ban", which to a large extent means a further escalation of control. It means that if the use of American technology exceeds 10%, it will be subject to strict export control restrictions.

image Source: Bilibili screenshot

Nikkei reported that TSMC produces Chinese Huawei smartphone processors and its business scale accounts for about 10% of TSMC’s sales. However, the US government, which believes that Huawei is in danger, continues to impose pressure on TSMC. Pressure. TSMC produces military semiconductors used in the United States' most advanced stealth fighter aircraft, such as the "F35", but the U.S. government requires manufacturing in the United States. Reuters said that in 2020, the U.S. Department of Commerce is preparing to increase the proportion of U.S. intellectual property rights. To "10% or higher", it was previously impossible to increase from more than 25% to 10% to strengthen restrictions on Huawei's export of high-tech products.

In terms of TSMC's business, according to the JBPRESS report, by around 2002-2008, the United States Accounting for about 75%. Since 2010, the proportion of the United States has declined slightly, but still accounts for 70-60%.

Source: JBPRESS

In 2012, TSMC began to make efforts in manufacturing state-owned semiconductors, which shows that this proportion is increasing year by year. It recorded 23% in the third quarter of 2018, then fell, but then rose again, reaching a record 22% in the fourth quarter of 2019. About half of these (more than 10%) are said to be against Huawei in China. In the global smartphone market, Huawei shipped more than 200 million smartphones in 2019, surpassing Apple and ranking second in global market share. TSMC produces Huawei smartphone APs and communication semiconductors. Huawei is a large customer, accounting for about 10% of TSMC's business.

Huawei's importance to TSMC is obvious. Although Huawei's mobile phone shipments abroad are not satisfactory, it still maintains its second position in the world. On this basis, if subsequent orders increase, TSMC will definitely give back to Huawei. In addition, the 14nm chips produced by SMIC can be used, and Huawei has also taken relevant independent production measures. It is unknown whether this stage may be the time for domestic chips to be gradually replaced?