US plans to further restrict Huawei’s development of semiconductors using American technology
- US Commerce Department said it would target Huawei’s acquisition of chips made with American software and technology
- Restriction on Huawei comes as Taiwan Semiconductor Manufacturing Company announces plan to invest US$12 billion to build a chip factory in Arizona
The Trump administration announced on Friday its plan to further restrict the ability of Chinese telecommunications giant Huawei Technologies to develop semiconductors using American technologies.
The Commerce Department said it would refine its regulations specifically on how to define “direct product” rules to “narrowly and strategically target Huawei’s acquisition of semiconductors that are the direct product of certain US software and technology”.
The changes will help “cut off Huawei’s efforts to undermine US export controls”, the department said.
The statement coincided with an announcement by Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract manufacturer of silicon chips, that it would invest US$12 billion to build a chip factory in Arizona.
The two developments reflect momentum in the US’s effort to decouple from China on tech as the Trump administration and lawmakers in both US political parties voice concern that America’s dependence on China for critical technology could threaten the country’s national security.
