Semiconductors for Huawei finally 'stop shipping' SMIC, MediaTek apply for approval from US authorities

Huawei's semiconductor procurement route has been cut off due to the tightening of sanctions by the US government.

On September 15th, the suspension of semiconductor shipments to China's largest telecommunications equipment company, Huawei, finally began. Under such circumstances, it turned out that several semiconductor manufacturers have applied to the US Department of Commerce for permission to ship their products to Huawei. However, at this time, the ministry's decision on the application has not been clarified.

The suspension of shipments follows the tightening of sanctions imposed on Huawei by the Department of Commerce in May and August of this year. On May 15, the ministry said that when semiconductor manufacturers contract to manufacture chips designed by Huawei and its subsidiary HiSilicon, when using equipment or software containing American-origin technology in the process, Mandated to obtain a permit, including for production outside the United States.

As a result, Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC), the world's largest semiconductor contract manufacturing (foundry), and China's I had to stop taking orders. The 120-day grace period for shipments based on existing orders expired on September 14th.

Furthermore, on August 17th, the Department of Commerce extended the regulation to include all semiconductor chips that use American-origin technology. As a result, Taiwan's MediaTek, which handles smartphone SoCs (abbreviation for system-on-chip, which integrates core components such as CPUs and communication modems on a single board), and South Korea's semiconductor memory major Samsung Electronics and others are now required to obtain permission from the Ministry of Commerce to continue doing business with Huawei.

A big blow to overseas semiconductor manufacturers

Huawei has the world's largest market share for mobile communication base stations in 2019, smartphones are the second largest in the world, and there are also servers and notebooks. We are working on various products such as personal computers and smart TVs. As one of the world's largest users of semiconductors, the suspension of shipments is a big blow for semiconductor manufacturers.

In response to Caixin reporter's interview, SMIC clarified that ``we have submitted an application to the US authorities to continue supplying to Huawei in accordance with regulations,'' and added, ``Our company strictly complies with laws and regulations. I will," he emphasized. MediaTek also filed an application for approval to ship with the U.S. authorities in accordance with the regulations, and responded that it was "waiting for the results of the review."

According to South Korean media reports, Samsung Electronics and SK Hynix have also applied for a shipping permit from US authorities to continue selling semiconductor memory to Huawei. Caixin reached out to the two South Korean companies for confirmation, but did not receive a comment. In addition, Qualcomm of the United States, the world's largest SoC for smartphones, and Micron Technology, a major semiconductor memory company, are also believed to have applied for shipping permission.

(Reporters by Caixin: Qu Hui and Zhang Yuchu) *The original will be distributed on September 15.

Receive the latest published articles from Zaixin Biz & Tech by email (follow the author)

Popular business articles Topic board AD related articles Serial list Trend library AD popular videos The wall that rises to ” swept across the United States! The secret to the success of "Japanese sweets subscription" Access ranking

* Articles within the past week

» Click here for 11th to 30th place

* Articles within the past month are eligible

» Click here for 11th to 30th place

* Articles within the past month are eligible

» Click here for 11th to 30th place

* Articles within the past month are eligible

» Click here for 11th to 30th place

* Total weekly likes and shares (increase)

» Click here for 11th to 30th place Trend Watch AD Latest issue of Weekly Toyo Keizai Earthquake in Ukraine crisis and US interest rate hike! Stock Collapse Next move

Stock prices plummeted due to the turmoil in the global economy. However, there are stocks that grow even in a headwind market environment. In this special feature, we thoroughly explain effective investment methods and how to select stocks. A ranking that anticipates the spring issue of “Company Shikiho” released on March 18 is also posted. We will explore the next move to win in the turbulent market.

Subscribe to the STORE Tweets by Toyokeizai Toyo Keizai Books *Introducing topical books published within the last three months. » See morePrivacy PolicyIntellectual PropertyServicesIntroductionAdvertisementsCorporate Database ServicesInquiriesRecruitment InformationToyo Keizai Inc.

To the top of the pageTop page