Taiwanese chip maker TSMC set to gain as others cut supplies to Huawei
- Company reiterates that its shipments ‘abide by the rules’ after mainland Chinese telecoms giant was blacklisted by Washington
- Analysts expect the semiconductor firm to meet forecast of a 7 per cent jump in revenue for second quarter, boosted by demand from Huawei subsidiary
The company on Tuesday reiterated that its shipments to the mainland Chinese telecoms giant “abide by the rules”, after Washington blacklisted Huawei in a bid to cut off its access to American technology amid a deepening trade war between the two countries.
Boosted by a sharp rise in demand from HiSilicon Technologies – Huawei’s chip design subsidiary – TSMC should be able to achieve its second quarter revenue forecast of US$7.6 billion, up about 7 per cent from the previous quarter, market analysts said on Tuesday.
The Taiwanese firm supplies advanced 7-nanometre chips to HiSilicon.
But TSMC’s performance in the second half of the year depended on whether Washington took issue with its decision – since the ban affects not just US companies but third-country suppliers – and if Huawei had difficulty finding suppliers of other key components for its products, they said.
“TSMC’s continued supply to HiSilicon and its advanced technology in mass-producing 7- and 5-nanometre products are the major reasons it could maintain an unchanged revenue forecast in the second quarter,” analysts from Capital Investment Management Corp said in a note.