According tomedia “Barron’s” reported that the U.S. government wants to cut off the lifeblood of China’s technology industry, will inevitably affect tsmc and Samsung in a critical position, but ultimately the market reality will overtake politics, not to fall victim to the two strong fight. Barron’s points out that TSMC is a wafer foundry leader and also produces chips for 5G technology and cloud services. Samsung Electronics and its South Korean rival,SK Hynix, supply about 70% of its memory chips worldwide.
The U.S. Commerce Department recently upgraded its export ban on Huawei, which would have required U.S. companies to apply for licenses to sell chips to Huawei. From May 15, the U.S. Department of Commerce expanded the scope to require export licenses for any “direct products using certain U.S. software and technologies,” a restriction that would be imposed on overseas companies who use U.S. technology.
According to Barron’s, the new u.S. rules appear to have majorimplications, as the company uses U.S. devices to make semiconductors and sell them to Huawei, which is the second-largest customer after TSMC.
Jeff Pu, head of technology research at GF Securities, says chip production technology is led by the United States, with the production line mainly in Chinese mainland, with The Taiwan supply chain in China just in the middle. But TSMC’s share price has risen 9 percent since the Commerce Department issued the new rules, which hasn’t scared investors away.
Mehdi Hosseini, senior equity analyst at Susquehanna International Group, believes that market reality will ultimately prevail over politics and that TSMC will continue to sell products around the world. TSMC’s investment in research and development is huge and must be cost-sharing effectively from customers in the U.S. and Chinese mainland.
Kevin Wolf, a trade law partner at the Washington-based law firm Akin Gump, says the Commerce Department’s rules are so porous that chipmakers may still be able to circumvent new restrictions by selling chips to intermediaries and reselling them to Huawei, or claiming that the chips are not “direct products” made from U.S. devices.
Pu of GF Securities said tsatum had announced a $12 billion investment in the U.S. plant in Arizona a day before the U.S. Department of Commerce upgraded its containment measures, and that while the plant was not necessarily established, it showed that TSMC was “trying to get a little closer to the United States.” “
By contrast, tensions between China and the United States have hit Samsung less. For digital products, memory chips are more like add-on components than TSMC logic chips have strategic advantages, says James Lim, head of Korea research at Dalton Investments.
Barron’s believes that while technology companies will have years to deal with the brutal test of countries threatening to close borders and compete for supplies, it is certain that TSMC and Samsung will still have a place.