According to the Economic Daily News, in response to reports that Huawei is gradually shifting the production of internally designed chips from TSMC to SMIC, TSMC said that it does not think that SMIC's market share has expanded, and TSMC has not lost its market share.

Wei Zhejia, CEO of TSMC, said that TSMC provides the best technology and services in all regions and is quite competitive. TSMC and customers work closely, not only will not lose market share, but may expand market share.

Reuters reported that people familiar with the matter revealed that in the face of more restrictions that the United States may offer, Huawei is gradually shifting the production of internally designed chips from TSMC to SMIC.

Earlier reports said that the US government will expand its pressure and adopt stricter rules on Huawei ’s shipments to companies. It may reduce the limit of technology derived from the US technology to 10%. In addition, the US is considering amending the “foreign direct product rules” , Stipulates that foreign companies that use US chip manufacturing equipment need to obtain a US license before supplying chips to Huawei, so as to restrict TSMC from manufacturing chips for Huawei.

In order to circumvent US restrictions, one of the sources said that Huawei ’s chip division Hisilicon began requiring some engineers to design chips for SMIC instead of TSMC at the end of 2019, and said that Huawei has gradually switched to SMIC. Speed ​​up the production process.

In a statement to Reuters, a Huawei spokesperson called this transformation "industry practice": "Huawei will carefully consider capacity, technology and delivery issues when choosing a semiconductor manufacturing plant." In addition, Huawei also said that South Korean companies , Chinese Taiwanese companies and Chinese mainland companies can be used as alternative sources.