Taiwan Semiconductor Manufacturing Co Ltd.’s planned factory in the United States is “definitely in line with” the company’s interests, Chairman Mark Liu told investors on June 9, 2020. The amendment would require licenses for sales of semiconductors made abroad with U.S. technology to Huawei, the world’s biggest supplier of telecommunications equipment and the second-largest smartphone maker.
Analysts estimate that 60% of the TSMC revenue comes from contracts with US companies, while only 20% of them come from China. Speaking at an annual general meeting, Liu said that it is difficult to predict how fast any eventual gap would be filled, but TSMC “will find a solution” and “will overcome the challenges one by one”. “This is something that can be solved not solely through the interpretation of the rules, but also has to do with the intention of the US government,” Mr. Liu told reporters at TSMC’s annual general meeting on Tuesday.
“Today that TSMC is still observing how the ban will be implemented and is still studying what this means for the company. The possibility of applying for an exemption was not ruled out,” – He said
The US commerce department tightened restrictions on Huawei last month, accusing the company of having continued to use US technology in spite of export controls in place since May 2019.
Liu also said that the TSMC’s U.S. investment plan is “definitely in line with” the company’s interests, and will help the firm gain the trust of clients and boost its talent pool. However, Mr. Liu said TSMC would apply for a US government license to continue shipping to Huawei and its subsidiaries after the consultation period on the new rule ends in mid-July.
Founded in 1987, TSMC is the world’s largest foundry semiconductor manufacturing plant. Customers include Apple, Qualcomm, Huawei, and others. Its headquarters is located in the Hsinchu Science Industrial Park in Hsinchu, Taiwan. TSMC shares are listed on the Taiwan Stock Exchange under the stock code of 2330, and American Depositary Receipts are listed on the New York Stock Exchange under the ticker symbol TSM.
The company last month unveiled plans for a US$12 billion plant in the United States just hours before the U.S. Commerce Department outlined a proposal to amend chip export rules – a move that would restrict TSMC’s sales to Huawei.
[ Source: Reuters | GSMARENA | Financial Times ]