On the heels of problems with Huawei, TSMC has decided to reduce their capital expenditures accordingly by about $7 billion. TSMC has grown substantially to rival Intel. When TSMC announced a US facility it probably was discussed extensively by the Intel board of directors.
Huawei is the second-largest customer of TSMC. In 2019, Huawei alone contributed 14% of TSMC’s overall revenue. In fact, Huawei was gearing up to surpass Apple as TSMC’s largest customer before the ban.
This dispute has active for over a year now and Huawei is currently suffering from multiple bans. Huawei can not do business with American company without a license from the government. This means that its smartphones can not use Google Mobile Services. This is severely affecting its smartphone business outside China. Not satisfied with Huawei’s suffering, the American government extended the ban to non-American companies that use American technology. The target for this new law is TSMC, the maker of Huawei’s Kirin chip.
While TSMC will lose some business, by being aligned with US companies does assure it will have a large number of big customers. The actions only affect Huawei and other Chinese customers are not affected at this time.
TSMC has also seen some reductions in orders for some devices driven by the slowdown due to coronavirus. Overall however TSMC should be happy.
TSMC may reduce the orders from ASML next year depending on the orders that come in for the N7+ and N5 lines.
China has developed some RAM production mostly to help cope with shortages for domestic manufacturers. Huawei may need to work with the local Chinese semiconductor manufacturing to develop their hardware which will take a few years to catch up with TSMC. It is not known if ASML hardware is subject to the ban yet.
HiSilicon is probably the largest manufacturer in China. They have been making the Kirin devices for many years. Huawei owns HiSilicon.
Semiconductor Manufacturing International Corporation is the largest semiconductor manufacturing company in China and they have several facilities throughout the country. On May 25, 2019, SMIC announced it would delist from the New York Stock Exchange (NYSE) following Huawei blacklisting by the United States government amid the China–United States Trade War.
ChangXin Memory Technologies currently makes DDR4L and DDR4 at 19nm. They are able to make about 20,000 wafers per month and they are expanding towards 40,000 per month by the end of 2020.
GigaDevice makes NOR flash memory. The also have a custom version of the ARM Cortex-M3 core. In 2019 they introduced a new RISC-V MCU core named “Bumblebee Core” (designed by Nuclei System Technology).