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> It announced new rules that target Huawei’s in-house microchips, which power many of the firm’s products. The rules are aimed at the factories that take such

> It announced new rules that target Huawei’s in-house microchips, which power many of the firm’s products. The rules are aimed at the factories that take such designs and turn them into working silicon, such as those owned by TSMC in Taiwan and SMIC in China. Out of curiosity, what's the legal basis for this? Is it just a threat, and if companines like TSMC don't follow it, they'll also be blacklisted from the US market?

nradov 6y ago
The legal basis is that companies which violate US sanctions are not allowed to operate in the US, or transact business using financial services companies which operate in the US. That applies even if no part of the transaction passes through US territory.
- KCUOJJQJ 6y ago
  It's unfair that non-US companies must annoy Huawei. Non-US companies usually don't benefit from this. It's like forcing foreigners to be part of your army.
  - threatofrain 6y ago
    Those companies, like every company seeking to do business around the world, will make its judgment call on whether it's worth it to satisfy any party's demands.
enitihas 6y ago
Can the US afford to blacklist TSMC from anything?
- KCUOJJQJ 6y ago
  From https://www.nytimes.com/2020/05/14/technology/trump-tsmc-us-chip-facility.html https://www.nytimes.com/2020/05/14/technology/trump-tsmc-us-... Mark Liu, T.S.M.C.’s chairman, told The New York Times in October that T.S.M.C. had been negotiating with the Commerce Department about a possible U.S. plant, but said it would require substantial government subsidies. How much, if any, public money might be associated with the company’s decision was unclear. And from https://www.bbc.com/news/world-asia-48917705 https://www.bbc.com/news/world-asia-48917705 The US State Department has approved a potential arms sale to Taiwan, estimated to be worth $2.2bn (£1.76bn), the Pentagon said. Maybe TSMC thought it would be really good if Tawain were protected better thanks to these weapons, and TSMC would also like these subsidies.
- pstrateman 6y ago
  Taiwan cannot afford to lose the support of the US arms industry.

nradov 6y ago

The legal basis is that companies which violate US sanctions are not allowed to operate in the US, or transact business using financial services companies which operate in the US. That applies even if no part of the transaction passes through US territory.

KCUOJJQJ 6y ago
It's unfair that non-US companies must annoy Huawei. Non-US companies usually don't benefit from this. It's like forcing foreigners to be part of your army.
- threatofrain 6y ago
  Those companies, like every company seeking to do business around the world, will make its judgment call on whether it's worth it to satisfy any party's demands.

enitihas 6y ago

Can the US afford to blacklist TSMC from anything?

KCUOJJQJ 6y ago
From https://www.nytimes.com/2020/05/14/technology/trump-tsmc-us-chip-facility.html https://www.nytimes.com/2020/05/14/technology/trump-tsmc-us-... Mark Liu, T.S.M.C.’s chairman, told The New York Times in October that T.S.M.C. had been negotiating with the Commerce Department about a possible U.S. plant, but said it would require substantial government subsidies. How much, if any, public money might be associated with the company’s decision was unclear. And from https://www.bbc.com/news/world-asia-48917705 https://www.bbc.com/news/world-asia-48917705 The US State Department has approved a potential arms sale to Taiwan, estimated to be worth $2.2bn (£1.76bn), the Pentagon said. Maybe TSMC thought it would be really good if Tawain were protected better thanks to these weapons, and TSMC would also like these subsidies.
pstrateman 6y ago
Taiwan cannot afford to lose the support of the US arms industry.