TSMC previously said shipments to its main client Huawei were not affected by USA action aimed at curbing the telecom equipment maker's access to American technology, and that it would continue to be a supplier to Huawei.
The company has subsequently started producing higher-end products at home and for Western consumers.
On May 15, US President Donald Trump effectively banned Huawei with a national security order. Huawei leads a long line of supposed infractions dating to the early 2000s, with Cisco going so far as to accuse Huawei of stealing their source code. Bloomberg also quoted a telecom industry representative stating that sales of Huawei's premium smartphones fell 20 percent in the first week after the USA administration announced its export ban. Secretary of State Mike Pompeo warned Switzerland and the Netherlands on Monday about working with Chinese technology.
'I'm anxious that the old phone won't be able to get updates because of what happened with Huawei, ' said Theerapong Jitjareonmanee, an existing Huawei smartphone user whose concerns held him back from buying more of the Chinese firm's products at the expo. And President Trump was expected to discuss Huawei during his visit with Prime Minister Theresa May on Tuesday. -China trade talks. Huawei is also aggressively fighting the United States.More news: Apple is selling a US$1K monitor stand without the monitor
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Last week, Huawei filed a "motion for summary judgement" in its lawsuit that challenges the constitutionality of the U.S. law banning federal agencies from buying its products.
Under the USA commerce department limitations, which inhibit the sale and trade of US tech to Huawei without the govt.'s permission, multiple prominent USA based tech standards setting firms have publicized limitations on Huawei's contribution to their activities. Most Huawei phones run on Google's Android operating systems.
"The US has not bought from us, is not buying from us and doesn't have plans to buy from us". But cybersecurity experts worry the ban will hurt US tech companies more than it hurts the Chinese telecom giant - and will diminish USA influence over the security of new technologies. Strategy Analytics also expects Huawei smartphone shipments to shrink by about 24 percent this year and by 23 percent next year. But that will take some time.
Huawei, through their current woes with the U.S. government, have been hard at work and have started rolling out the latest Android update to more of their devices.