The US sanctions against Huawei will not affect only the Chinese tech giant. Its supply chain partners, particularly TSMC, will also take a hit from trade restrictions taking effect in September on tech support for Huawei. The Chinese smartphone and telecom equipment vendor knows well that the US will not let it off the hook easily, and it has geared up chip purchases from Taiwan-based MediaTek. Meanwhile, Taiwan's backend houses have seen increases in testing orders from IDMs whose in-house production has been affected by COVID-19 lockdowns.
Fresh US ban on Huawei to impact TSMC and more starting late September: TSMC and other Taiwanese suppliers of Huawei are expected to see their revenues start to suffer in late September from fresh US sanctions blocking companies around the world from using American-made machinery and software to design or produce chips for Huawei and its affiliates, according to industry sources.
Huawei to procure more chips from MediaTek: Mobile SoC specialist MediaTek is expected to see orders placed by Huawei surge by as much as 300% in 2020 due to the US government's fresh trade ban on the Chinese vendor, according to industry sources.
Taiwan IC testing houses see RF chips orders spike from IDMs: Taiwan-based IC testing houses including King Yuan Electronics (KYEC), Sigurd Microelectronics and Ardentec have seen orders for RF chips ramp up recently from Taiwanese IC designers and US IDMs, with the orders set to drive up their revenues for the third quarter of the year, according to industry sources.