Huawei has urgently added a large order of up to 700 million US dollars to TSMC, products covering 5 nanometers and 7 nanometers process, making TSMC related capacity full.
The US Department of Commerce announced that it will extend Huawei’s temporary license for another 90 days. It will postpone until August 13, 2020. But US chip manufacturing equipment companies need US licenses before supplying certain chips to subsidiaries such as Huawei or HiSilicon.This rule will allow chips already in production to be shipped to Huawei. As long as the shipment is completed within 120 days from Friday. These chipsets need to be put into production before Friday. If not they will stop export according to the latest regulations.
According to industry analysis, TSMC must increase production capacity supply to meet the huge urgent order demand of customers, and allow subsequent operations to maintain strong momentum. 5nm mainly produces Huawei’s next-generation flagship mobile phone Kirin 1020 chip. The 7nm version produces 5G baseband chips.
TSMC announced that it plans to build the world’s most advanced chip factory in Arizona, USA. This factory is scheduled to start construction in 2021 and start production in 2024. TSMC’s total expenditures on this project are approximately US $ 12 billion from 2021 to 2029.
TSMC emphasizes that the premise of setting up a factory in the United States is “cost” and “meeting customer needs”. Under the US government’s willingness to solve investment problems, TSMC “sees opportunities”. This investment has no political considerations.