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U.S. mulls cutting Huawei off from global chip suppliers, with TSMC in crosshairs – Source Reuters Tech News

WASHINGTON (Reuters) – The Trump administration is considering changing U.S. regulations to allow it to block shipments of chips to Huawei Technologies from companies such as Taiwan’s TSMC (2330.TW), the world’s largest contract chipmaker, two sources familiar with the matter said.

FILE PHOTO: The Huawei booth is shown during the 2020 CES in Las Vegas, Nevada, U.S. January 7, 2020. REUTERS/Steve Marcus

New restrictions on commerce with China’s Huawei are among several options to be considered at high-level U.S. meetings this week and next. The chip proposal has been drafted but its approval is far from certain, one of the sources said.

The measure would be a blow to the world’s no. 2 smartphone maker as well as to TSMC, a major producer of chips for Huawei’s HiSilicon unit and mobile phone rivals Apple Inc (AAPL.O) and Qualcomm Inc (QCOM.O).

“What they’re trying to do is make sure that no chips go to Huawei that they can possibly control,” the second source said….

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Source Reuters Tech News

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