Fact Check: Taiwan Semiconductor Manufacturing Co. (TSMC) cut off its supplies to Huawei in 2020 due to US export controls.

Fact Check: "Taiwan Semiconductor Manufacturing Co. (TSMC) cut off its supplies to Huawei in 2020 due to US export controls."

What We Know

In 2020, the United States implemented stringent export controls aimed at restricting technology transfers to certain Chinese companies, including Huawei Technologies. These measures were part of a broader strategy to limit China's access to advanced technology, particularly in the semiconductor sector. As a result, Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest contract chipmaker, announced that it would cease supplying chips to Huawei to comply with these US regulations (AP News). This decision was significant as Huawei was one of TSMC's largest customers, and the cut-off had substantial implications for Huawei's operations and its ability to produce smartphones and other electronic devices.

Analysis

The claim that TSMC cut off supplies to Huawei in 2020 due to US export controls is supported by multiple credible sources. The AP News article explicitly states that Taiwan's Commerce Ministry added Huawei to its export control list, which directly influenced TSMC's decision to halt supplies. Additionally, TSMC's compliance with US regulations reflects the company's reliance on the US market and technology, which underscores the geopolitical tensions surrounding technology supply chains.

The reliability of the sources used in this analysis is high. The Associated Press is a well-established news organization known for its factual reporting, while the information from the CIA World Factbook provides a reliable overview of Taiwan's economic and political landscape. Furthermore, the BBC offers a comprehensive understanding of the broader context of US-China relations, which is essential for understanding the implications of TSMC's actions.

However, it is important to note that while TSMC's decision was influenced by US export controls, the company also had to consider its business interests and the potential repercussions of continuing to supply Huawei amid increasing scrutiny and pressure from the US government.

Conclusion

Verdict: True. The claim that TSMC cut off its supplies to Huawei in 2020 due to US export controls is accurate. The evidence from multiple reliable sources confirms that TSMC's decision was a direct response to the regulatory environment established by the US government, which aimed to limit Huawei's access to critical semiconductor technology.

Sources

1. Taiwan adds China's Huawei and SMIC to export control list
2. Taiwan - The World Factbook
3. Taiwan – Wikipedia
4. Taiwaninsaari – Wikipedia
5. Exclusive: TSMC could face $1 billion or more fine from US ...
6. China and Taiwan: A really simple guide - BBC
7. Taiwan thinks the unthinkable: resisting China without America