Trump Cuts China’s Huawei Off From World’s Top Chip Maker

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The Trump administration has cut off China’s Huawei from being able to receive products from Taiwan Semiconductor Manufacturing Co Ltd (TSMC), which is the world’s largest manufacturer of advanced microchips.

TSMC “has stopped new orders from Huawei Technologies in response to Washington’s move aimed at further limiting chip supplies to the Chinese company,” Reuters reported. “A new rule, unveiled by the U.S. Commerce Department on Friday, expands U.S. authority to require licenses for sales to Huawei of semiconductors made abroad with U.S. technology, vastly expanding its reach to halt exports to the world’s No. 2 smartphone maker.”

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The threats from China come after TSMC announced last week that it would build a new factory in Arizona as part of a $12 billion deal that it reached with the U.S. that will “create over 1,600 high-tech professional jobs directly, and thousands of indirect jobs in the semiconductor ecosystem,” the company said in a statement.

“TSMC welcomes continued strong partnership with the U.S. administration and the State of Arizona on this project,” the company added. “The strong investment climate in the United States, and its talented workforce make this and future investments in the U.S. attractive to TSMC. U.S. adoption of forward-looking investment policies to enable a globally competitive environment for a leading edge semiconductor technology operation in the U.S. will be crucial to the success of this project.”

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