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The Huawei Ban May Help With The Global Chip Shortage

Qualcomm Snapdragon 765 5G Chip In Hand 01
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There’s a global chip shortage right now, and considering the fact that anything that uses electricity has a semiconductor inside, that’s a big deal. But, according to Qualcomm’s incoming CEO, Cristiano Amon, the Huawei ban could help with that shortage. As it would add some much needed capacity to Taiwan Semiconductor Manufacturing Co., or TSMC.

Because the US export rule change that took place in September, Huawei cannot get its chipset designs manufactured by foundries. This rule basically made it so any foundry in the world that uses US tech to manufacturer semiconductors, could not deliver them to Huawei, without consent from the Commerce Department. Basically meaning that Huawei cannot get its chipsets made. Considering how big of a company Huawei is, that is a big deal for capacity at TSMC.

Huawei was TSMC’s second-largest customer

Just how big of a deal is this? Well, Huawei was the second-largest customer of TSMC. Which is the world’s largest contract foundry. That opens up some impressive capacity for TSMC, and as Amon stated, that could help alleviate the chip shortage.

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The chip shortage has been a big deal for a few months already, this is why many products released last year, have not been on the shelf. The Sonos Arc is a good example. Since it was announced last year, it has rarely been seen in stock in any store, including Sonos’ own website.

But now the chip shortage is starting to garner more attention as automakers start to complain about the shortage. Without semiconductors, automakers cannot build vehicles. As they rely on semiconductors for the vehicle to work.

A semiconductor is the brain of any product that uses tech. Whether that is a car, smartphone, a light bulb, or even the light switch on the wall. So it’s a very popular component. And now, President Biden is stepping in to help with this shortage.

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