No assurance given to TSMC to sell to Huawei: US top official

WION Web Team
Washington Published: May 16, 2020, 01:15 PM(IST)

File photo: US President Donald Trump and China's President Xi Jinping. Photograph:( Reuters )

Story highlights

The U.S. undersecretary for economic growth, energy and the environment, claimed that no assurance has been provided that TSMC will be granted a license to allow it to sell US technology to China's Huawei.

Taiwan Semiconductor Manufacturing Co Ltd (TSMC) revealed a $12 billion investment plan in Arizona on Friday. The chip manufacturing company claimed that it will be generating over 1,600 jobs in the US.

TSMC is the biggest contract chipmaker. It is also a major supplier to U.S. tech giants such as Apple Inc and Qualcomm Inc, as well as Chinese firms like Huawei Technologies, which has not been America's favourite right now

However, Keith Krach, the U.S. undersecretary for economic growth, energy and the environment, claimed that no assurance has been provided that TSMC will be granted a license to allow it to sell US technology to China's Huawei.

Also read: Taiwan's TSMC plans to build chip plant in Arizona amid US-China rivalry

"I think roughly around 10-12% of TMSC`s business is China, and I think that is in essence almost primarily Huawei," Krach said. "So they will be restricted unless they're granted a license, and there is no assurances on that and we don't anticipate that."

The conflict happened as American President Donald Trump threatened to cut all ties with China accusing the Chinese government of hiding information about coronavirus. Following this accusation and suspecting Huawei of hacking the US research data, the American government blacklisted Chinese technology company Huawei.

"In terms of incentives, I know there is a number of things the U.S. Congress is looking at. I think there are some really good possibilities coming down the road," Krach said, while talking about the incentives being provided to TMSC.

He also urged people and political leaders to join forces in bringing back the manufacturing units back to the US.

China and the US have been at crossroads for the past few months as the US government has accused China of not only withholding information about coronavirus, but also of stealing US research on COVID-19.

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