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Electronics industry braces for U.S. sanctions tremor

Jun 5, 2020

Fresh U.S. sanctions that block companies around the world from using American-made machinery and software to design or produce chips for Huawei and affiliates is sending tremors through the electronics industry.

The American government deems Huawei to be a national security risk. The sanctions affect not only Huawei but all of its supply chain. Industry insider say the target for the latest ban is TSMC (Taiwan Semiconductor Manufacturing Company), the largest semiconductor company in the world and the brain behind Huawei’s Kirin chips.

According to sources, Huawei is exploring countermeasures against the US government’s tightening of export restrictions. Because direct transactions with TSMC, a major semiconductor foundry company, will become difficult, it’s alleged that Huawei has begun to discuss the purchase of semiconductors produced by TSMC through MediaTek. However, MediaTek has responded to the report sternly refuting the claims. 

It is also believed that Huawei may be in negotiation with UNISOC, a subsidiary of Ziguang Group, with the possibily to purchase semiconductor chips from the company.

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