TSMC predicts temporary decline from Huawei’s U.S. ban

Huawei is forecast to face shipment declines in the upcoming quarter due to the ongoing US restrictions but it can be said that the company is not the only one to face the loss in business because there’s one of the top chip manufacturers, that has predicted a decline in its business due to Huawei ban.

Huawei is willing to sign a no-spy agreement with the US

Chairman of TSMC (Taiwan Semiconductor Manufacturing Company Limited), told that the blacklisting of Huawei from doing business in the US will have a short-term impact on TSMC, reported Reuters.

TSMC previously said the US ban won’t affect its business with Huawei and confirmed that it would continue to supply to Huawei.

“It certainly will have some impact in the short term,” TSMC Chairman Mark Liu told reporters at the company’s annual general meeting in the technology hub of Hsinchu.

The official also said that the company’s profit outlook for 2019 remained unchanged, and he was upbeat on a possible recovery in the second half thanks to new smartphone launches and rising demand for fifth generation (5G) telecoms infrastructure.

According to Taiwanese media reports, Huawei accounted for 11 percent of TSMC’s total revenue in the first two quarters of this year and is among the chip maker’s top three clients. Chips supplied by the Taiwanese firm are used in Huawei’s home-grown Kirin processors for its smartphones.