US Works on Law to Prevent Huawei from Supplying Processors

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The US administration is preparing to amend existing laws to prevent the supply of processors to Huawei from companies such as Taiwan-based world’s largest independent semiconductor manufacturer TSMC.

Huawei, the world’s largest manufacturer of telecommunications equipment, is at the heart of the war of the USA and China for global technological domination. The Donald Trump government is trying to keep the Shenzhen-based firm away from next-generation 5G networks on the grounds that Huawei’s equipment can be used by China for espionage. Advocating that there is no security vulnerability that could create a backdoor on their devices, Huawei rejects US spying claims every time.

The USA, which blacklisted Huawei in May 2019 and prevented it from trading with American companies, is looking for a way to prevent global companies such as the world’s largest independent semiconductor manufacturer TSMC from supplying chips to Huawei. According to information from Reuters, US officials are considering changing the Foreign Direct Product Rule, which subordinates certain foreign goods based on American technologies or software to US regulations.

The regulation that the US government is working on envisages that foreign firms using American chip making equipment will obtain a US license before supplying products to companies such as Huawei that are opponents of the Washington government.

According to a report from China-based Everbright Securities last year, most of the chip manufacturers in China use equipment manufactured by US companies such as KLA, Lam Research and Applied Materials. The report draws attention to the fact that there is no company that only uses Chinese equipment in China, so it is almost impossible to manufacture any chipsets without US equipment. The Trump government aims to control global chip traffic and narrow Huawei’s movement area with the new regulation it will implement.

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