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Thursday, December 3, 2020

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TSMC will have obtained permission to negotiate with Huawei, but there is a big drawback

Since September 15, TSMC has been banned from working with Huawei and, consequently, interrupting the supply of processors to the latter. This scenario can only be solved with a special license from the USA.

According to Chinese sources, that special license was finally granted by the US Department of Commerce. Although TSMC can now work with Huawei again, the limitations will continue to be detrimental to Chinese technology.

Smartphone processor supply appears to be out of agreement

According to what is being advanced, the US has placed several obstacles in what the TSMC could provide to Huawei. One of the main restrictions is at the level of Kirin processors, which empower smartphones developed by Huawei.

Huawei

Additionally, TSMC will continue to be unable to provide chips designed for 5G networks. The basic idea of ​​this restriction is to prevent the leveraging of Huawei’s dominance in the expansion of new mobile networks outside Chinese territory.

That said, doubt remains as to what TSMC can truly provide its long-standing partner. Talk about chips designed on mature TSMC production nodes, but without ever specifying what they encompass.

Huawei’s future remains undefined despite this news

This alleged special license has not yet been confirmed, but judging from what is being advanced, it should not solve Huawei’s main problems. What should be an “oxygen balloon” for Huawei will change little or nothing.

Without the possibility of obtaining processors for its smartphones, Huawei’s future in this market remains uncertain. There are several companies that have already declared interest in this business, but so far, none have been authorized to do so.

Qualcomm is one of the entities that is waiting for an American authorization to be able to supply its chips to Chinese technology. If that happens, it will be the return of Snapdragon processors to Huawei equipment and users are grateful.

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