Netease science and technology news on May 18, according to Taiwan's economic daily, Huawei has urgently added up to 700 million US dollars to TSMC, covering 5 nm and 7 nm processes, making TSMC's relevant production capacity full.

According to Japanese economic news, TSMC has stopped receiving new orders from Huawei, but the previous orders will continue to be fulfilled. But then TSMC said it had stopped reporting new orders to China "purely market rumors.".

On the evening of May 15, Beijing time, the US Department of Commerce announced that it would extend Huawei's temporary license for another 90 days, until August 13, 2020. But it also announced that foreign companies using U.S. chip manufacturing equipment would be required to obtain a U.S. license before supplying certain chips to affiliates such as China or Hisilicon. But the rule will allow chips already in production to be shipped to Huawei, as long as the shipment is completed within 120 days from Friday. The chipsets need to be in production by Friday or they will be banned from export under the latest rules.

According to industry analysis, TSMC must increase its capacity to meet the huge demand of customers for urgent orders and maintain strong momentum for subsequent operations.

According to the source, 5nm mainly produces the next generation of Huawei's flagship mobile phone Kirin 1020 chip, while the 7Nm version produces 5g base station chip.

In the early morning of May 15, Beijing time, TSMC announced that it plans to build the world's most advanced chip factory in Arizona, the United States. The factory is planned to start construction in 2021 and put into production in 2024. TSMC's total expenditure (including capital expenditure) on this project is about 12 billion US dollars from 2021 to 2029.

TSMC emphasizes that the premise for us to set up a factory is "cost" and "matching with customer demand". Under the condition that the US government is willing to solve the investment problem, TSMC will "see the opportunity". This investment has no political consideration.

Source: Netease Technology Report