US mulls cutting China’s Huawei off from global chip suppliers like Taiwan’s TSMC

New restrictions on commerce with China’s Huawei are among several options to be considered at high-level US meetings this week and next, according to sources

“What they’re trying to do is make sure that no chips go to Huawei that they can possibly control,” one person said

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Huawei is at the heart of a battle for global technological dominance between the United States and China. File photo: AFP

Published: 9:25am, 18 Feb 2020Updated: 11:11am, 19 May 2021

The Trump administration is considering changing US regulations to allow it to block shipments of chips to Huawei Technologies from companies such as Taiwan’s TSMC, the world’s largest contract chip maker, two sources familiar with the matter said.

New restrictions on commerce with China’s Huawei are among several options to be considered at high-level US meetings this week and next. The chip proposal has been drafted but its approval is far from certain, one of the sources said.

The measure would be a blow to the world’s no. 2 smartphone maker as well as to TSMC, a major producer of chips for Huawei’s HiSilicon unit and mobile phone rivals Apple and Qualcomm.

“What they’re trying to do is make sure that no chips go to Huawei that they can possibly control,” the second source said.

Huawei is at the heart of a battle for global technological dominance between the United States and China. The United States is trying to convince allies to exclude its gear from next generation 5G networks on grounds its equipment could be used by China for spying. Huawei has repeatedly denied the claim.

To target global chip sales to Huawei, US authorities would alter the Foreign Direct Product Rule, which subjects some foreign-made goods based on US technology or software to US regulations.

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