Huawei chip unit orders up more domestic production as U.S. restrictions loom – sources

SHANGHAI: Huawei Technologies Co Ltd is gradually shifting production of chips designed in-house away from Taiwan Semiconductor Manufacturing Co Ltd (TSMC) and towards a mainland Chinese firm in preparation for more U.S. restrictions, sources familiar with the matter said.

The move towards Shanghai-based Semiconductor Manufacturing International Corp (SMIC) comes as Washington readies new rules which would require foreign companies using U.S. chipmaking equipment to obtain a license before supplying chips to Huawei – rules that would directly affect TSMC.

It also highlights how U.S. restrictions against Huawei can act as an impetus for Chinese companies to accelerate the development of homegrown technology.