TSMC could adjust orders from Qualcomm, NVIDIA and more to ramp up production of Huawei chips

The world’s largest contract chipmaker, TSMC (Taiwan Semiconductor Manufacturing Company), maybe planning on coordinating with various companies like NVIDIA, AMD, Qualcomm and more to shift its production focus towards Huawei chips.

This move arrives after the Chinese company lost its chip supply from TSMC, due to new sanctions being enforced by the US Government. However, 120 days buffer period was also offered for a smooth transition of phasing out Huawei chip orders and completing pending ones as well. Thus, TSMC could be asking other companies to shift their orders, enabling it to ramp up Huawei Kirin chip production and complete the order in time.

According to reports from Taiwanese media, TSMC may face difficulties to achieve the chip orders for the Chinese smartphone vendors if it doesn’t coordinate with other firms and adjusts its production capacity. Thus, a more focused approach to, what could possibly be Huawei’s final order, maybe a priority order for the semiconductor giant. The former has always been a major customer for TSMC, so the new sanctions will affect both sides.

Earlier this month, a report had claimed that Huawei has placed an additional order worth 700 million US Dollars with TSMC to cover its 7nm and new 5nm chip orders. The latter is for its upcoming flagship Mate 40 series that will launch later this year. Hence, Huawei is reliant on TSMC regarding its 5nm based Kirin 1020 (or reportedly Kirin 1000) SoC. We will be providing more updates regarding this, so stay tuned.

(Via)

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