US may cut Huawei off from the world's biggest chip maker
The United States 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 chipmaker, two sources familiar
with the matter told the Reuters news agency.
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 second-largest
smartphone maker as well as to TSMC, one of the biggest producers of chips for
Huawei's HiSilicon unit and mobile phone rivals Apple Inc and Qualcomm Inc.
"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 US and China. The US 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.
Reuters reported possible changes to that rule in November.
Under the draft proposal, the US government would force
foreign companies that use US chipmaking equipment to seek a US license before
supplying Huawei - a large expansion of export control authority that could
anger US allies worldwide.
The US Commerce Department declined to comment on the
proposal.
But a Commerce spokesman said recent US charges against
Huawei, including conspiring to steal trade secrets, "reaffirm the need
for caution in considering license applications. The US continues to have major
concerns about Huawei."
Huawei did not respond to requests for comment.
A spokeswoman for TSMC said the company does not answer
"hypothetical" questions and does not comment on individual
customers.
The US placed Huawei on a blacklist in May last year, citing
national security concerns. That forced some US and foreign companies to seek
special licenses from the Commerce Department to sell to it, but China hawks in
the US government have been frustrated by the vast number of supply chains
beyond their reach.
Others in the Trump administration fear antagonising
Beijing, which just signed a trade deal with Washington. They also worry the
restrictions will drive innovation offshore and benefit foreign rivals.
Most chip manufacturers rely on equipment produced by US
companies like KLA, Lam Research and Applied Materials, according to a report
last year from China's Everbright Securities.
"There is no production line in China that uses only
equipment made in China, so it is very difficult to make any chipsets without
US equipment," Everbright wrote.
Comments
Post a Comment