TSMC Finally Gets License From US Govt. To Provide Chips To Huawei - But With A Huge Catch

Oct 12, 2020 News

TSMC Finally Gets License From US Govt. To Provide Chips To Huawei - But With A Huge Catch

Huawei has been in a deep hole since the start of 2020, as it has seen lots of adversities during the year. To start with, the trade war between China and the US has got Huawei stuck in between, and suffering from all of the consequences. Huawei had made its way to the top of the smartphone manufacturers, being the biggest phone maker in the world - but the sanctions imposed by the US government is probably going to see the Chinese behemoth drop out of the top 5 list even by 2021.

To start, Huawei had its right to Google services stripped by the US administration, as none of the new Huawei phones could have Google services inside them, which meant no Google Play Store, Gmail, Youtube and a lot more. Huawei did a lot to make sure that doesn’t hurt them too much, by aggressively marketing their own AppGallery store.

However, the biggest hit probably came to the Chinese phone maker when the US administration disallowed TSMC, the taiwanese chip maker which is responsible for providing Huawei with their Kirin chips, to provide any equipment to Huawei. The lack of chip orders also led to Huawei having to delay their launch of the Mate 40.

But it seems like there has come a twist in the tale of the Huawei-US battle, as the US administration has granted TSMC permission to provide chipsets to Huawei from now on. However, that news won’t really make Huawei jump with joy, as there’s a big catch. None of the modern chipsets can be provided by TSMC to Huawei, and the latest chipset that Huawei can receive is 28nm ones - which is practically useless for the Chinese company, as it currently works with 5nm chips, and was looking to move forward to 3nm and 2nm even in the near future.

The permission being granted seems like a move by the US administration to seem positive in the public eye, but it seems like a gimmick as it doesn’t really do anyone good. However, we hope it brings better conditions between Huawei and the US in the future.

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