TSMC Cuts Off Huawei Chip Supply After US Rule Change

The US Commerce Department expands the Foreign Direct Product Rule (FDPR) to cover any chip made with US equipment or software anywhere in the world, directly targeting TSMC's ability to manufacture chips for Huawei's HiSilicon subsidiary. TSMC announces it will stop taking new Huawei orders by September 2020. This severs Huawei's access to advanced 5nm and 7nm chips, effectively crippling its smartphone and 5G businesses.