For well-known reasons, the United States wants to cut off Huawei’s chip supply chain, and recently it was reported that Huawei’s contract partner TSMC is also actively taking action to coordinate AMD, NVIDIA, Qualcomm, MediaTek and other customers, hoping to give priority to Huawei’s production capacity. With 120 days of buffers ahead of the U.S. law, TSMC and Huawei need to use that time to prepare as many orders as possible, after news broke that Huawei had placed an emergency order worth $700 million, or about 4.9 billion yuan, mainly related to 7nm and 5nm (5nm and 12nm) processes.
Since TSMC’s 7nm capacity is already full and cannot meet Huawei’s needs in a short period of time, it needs to coordinate with other 7nm process customers, especially AMD, NVIDIA, Qualcomm, MediaTek and others, in the hope that they will be able to adjust their orders, and TSMC will produce as many chips as possible for Huawei within 120 days.
In addition to the $700 million bill, huawei’s mobile chip security period could be maintained until at least the end of the year, the sources said.
TSMC’s news that it coordinates other customers to give Huawei capacity has caused a stir in the industry, and there have been no such examples before, but TSMC responded to the incident today, declaring that “the company does not disclose customer order information and cannot respond to market rumors.” “
It seems that TSMC is not confirmed but does not deny the news, but also have to let the bullet fly for a while. Huawei is now an increasingly important customer of TSMC, accounting for 14 per cent of TSMC sales last year, compared with just 5 per cent in 2017.