Huawei’s flagship chip Kirin 1020 is not affected by the latest actions of the U.S. Commerce Department

The Commerce Department’s latest move has affected not only Huawei, but some suppliers such as TSMC, and wonders whether this will delay production of Huawei’s upcoming 5nm Kirin 1020 flagship SoC. According tomedia reports, the new U.S. government rules only affect future orders, not Huawei’s already ordered orders, which means that 5nm and 7nm SoC production will be approved.

Huawei's flagship chip Kirin 1020 is not affected by the latest actions of the U.S. Commerce Department

┬áBut the latest report says Huawei is placing orders of 5nm and 12nm because TSMC’s 7nm capacity is already full and it can’t squeeze out capacity to supply additional orders from Huawei. The 5nm capacity utilization rate is about 50%, so it’s mainly a 5nm process, with about 25,000 wafers, and the order is worth $375 million at a price of $15,000 each.

This means that the Kirin 1020 SoC is scheduled to be produced on schedule for the release of Mate 40. But the future of the Kirin 980 and 990 sits on the question mark because they are based on a 7nm process and 12nm orders are for 5G base stations.

Huawei has some time to act and place other orders before the ban is imposed in September.