The Department of Justice has indicted Huawei for stealing U.S. technology and helping Iran evade sanctions, and the Department of Commerce placed Huawei on the Entity List in 2019. The tighter rules will cover vital Huawei suppliers such as nikkei.com/Companies/Taiwan-Semiconductor-Manufacturing-Co. While SMIC is being identified as the largest beneficiary of Huawei enhancing ties with China-based foundries, some observers believe that SMIC is unlikely to see Huawei give it all of its advanced-node chip orders, as there is considerable technology gap between the two foundry houses.
The U.S. has long maintained that Huawei engages in espionage for Beijing - a charge the company denies.
Such decisions would have a "serious impact" on numerous global industries, harming trust and collaboration in the global semiconductor industry supply chain and increase conflicts and losses, the statement said.
"The Chinese state has the authority to demand tech companies like Huawei turn over useful information or provide access to the communications and technologies owned and sold by Huawei".
According to analysis by O'Melveny & Myers, an worldwide law firm, the creation of China's "unreliable entities list" may place companies with operations in both the US and China in a hard position: comply with usa law and be in violation of Chinese law, or vice versa. Ultimately, this will harm US interests.
Guo said that Huawei spent about $18.7 billion previous year buying from US suppliers. "We expect China to retaliate if this materializes".
Huawei Technologies in its first official response to the Trump administration's move to curb its access to global chip supplies called it "arbitrary" and said its business would be impacted.
A new rule, unveiled on Friday by the US Department of Commerce, expands US authority to require licenses for sales to Huawei of semiconductors made overseas with US technology, vastly expanding its reach to halt exports to the world's No. 2 smartphone maker.
Huawei can not provide a business forecast covering this year for the time being, Guo said. Last year, Huawei took a $12 billion hit in revenue from the USA trade blacklisting compared with the company's original business plan, according to Guo.
The U.S. Commerce Department issued a statement on Friday to amend an export control rule that "strategically targets Huawei's acquisition of semiconductors that are the direct product of certain U.S. software and technology".
The Chinese Department of Commerce strongly opposes the tighter USA export controls, and said Sunday that such restrictions pose a huge threat to the global supply chain.
Huawei was TSMC's second-biggest customer in 2019, accounting for 14 percent of TSMC's total sales or 152.876 billion New Taiwan Dollars (about $5 billion), according to Taiwan's government-run Central News Agency.
China will never sit by and watch Huawei be "slaughtered", Eric Xu, another Huawei rotating chairman, said at the end of March.