Taiwan Semiconductor Mfg. Co. Ltd. (NYSE:TSM) revealed that it is ready to quickly fill any order gap that may arise if the U.S bans business dealings between Huawei and American-based firms.
This is what TSMC Chairman Mark Liu had to say about the current state of uncertainty regarding his company’s relationship with Huawei. Following the recent proposal by the U.S. Commerce Department, the relationship between the two companies is currently at stake to amend chip export laws. If the new regulations are implemented, then it might prevent TSMC from providing its semiconductors to the Chinese electronics manufacturer.
“We hope that won’t happen. But if it does, we will replace it in a very short time,” stated Mr. Liu.
Mr. Liu also pointed out that his company is currently watching keenly to see how the U.S will implement its rules. TSMC is evaluating its options and how a change in the chip export laws will potentially impact its operations. Huawei happens to be one of The TSMC’s biggest customers, and so a change against Huawei will leave a huge order gap.
TSMC is evaluating its options in case the proposed chip export changes are implemented
Fortunately, the company is ready to fill any forthcoming order gap, although the company executives believe it will be difficult to predict how fast they can adjust. However, TSMC might also apply to be exempted from the ban. The semiconductor manufacturer, however, remains optimistic about its ability to come up with a solution and also to overcome challenges. Liu noted that the company’s investment plan for the U.S aligns with its shareholder interests, and there are hopes that it will help attract more clients from the U.S.
TSMC revealed plans to build a $12 billion semiconductor manufacturing plant in the U.S. This was just hours before the U.S. Commerce Department presented the proposal to change chip export rules. The company has not announced any changes to that plan, and it will likely continue to work on it. This is because TSMC has other major customers to which it supplies its semiconductors. They include QUALCOMM, Inc. (NASDAQ: QCOM), and Apple Inc. (NASDAQ: AAPL).