The above also means that, in addition to TSMC, local wafer foundry and seal testing plants, such as SMIC, Huahong Hongli and Changdian technology, which use a large number of us equipment, cannot deliver products to China without us permission.
For new orders after May 15, even if they can be delivered to Huawei before September 14, they also need to apply to the United States for permission. Given the difficulty of getting permission from the United States, Fabs and seal testing plants will face great risks if they continue to receive new orders from Huawei. Recently, it has been pointed out that TSMC has stopped receiving new orders from Huawei. TSMC did not positively clarify whether the news is true. Some insiders also said that TSMC is still holding a meeting to discuss the matter.
People familiar with the matter told cimicronet that Huawei had predicted that the US would further restrict its chip business, so it had added a large number of orders to suppliers such as TSMC and SMIC in advance. According to different processes, these chips can be delivered in about 2.5-4 months, and can be delivered before September 14, so the short-term impact of management and control upgrade on the company and its suppliers is not obvious.
Previously, industry chain people once disclosed on Weibo that Huawei placed an order with TSMC last week with an amount of US $700 million, mainly using 5nm and 7Nm processes, and these chips will be able to support the corresponding products for about a quarter.
Chip delivery will be completed by September 14 and then used to maintain a quarter of product sales. In this way, Huaweis security period can reach the end of this year. Huaweis urgent orders added in advance are not limited to 5nm and 7Nm, and each product line should be synchronized.
With the localization of Huaweis suppliers, the relationship between SMIC and Hisilicon has become closer in the past year. According to Nikkei, Hisilicons orders now account for 20% of SMICs international revenue. Another industry expert said that Hisilicon has placed an order with SMIC for a total amount of 800 million US dollars, and SMIC is also expanding its capacity. Currently, 6-7 Chengdu is ready for Hisilicon in the capacity expansion plan.
According to the first quarter financial report of SMIC, the companys contract liabilities increased to $195 million from $92.333 million in the fourth quarter of last year, with a growth of 111% on a month basis (contract liabilities refer to the obligations of enterprises to transfer goods due to the consideration received or receivable from customers). It can be seen that SMIC added a large number of orders in the first quarter, most of which may come from Hisilicon.
Although the U.S. crackdown on Huawei and its subsidiaries has risen to an unprecedented level, Huaweis short-term operation will not be greatly affected because it has increased orders to TSMC, SMIC and other suppliers ahead of schedule. The real problem Huawei needs to face is that the future of its chip business has been shrouded in dark clouds. If there is no room for easing the US crackdown, only active thinking and change can make Huawei survive.
Source: Wang Fengzhi, editor in charge of jiwei.com_ NT2541