The Trump administration moved to block shipments of semiconductors to Huawei Technologies from global chipmakers
The Commerce Department’s rule, effective Friday but with a 120-day grace period, also hits Taiwan Semiconductor Manufacturing Co Ltd , the biggest contract chipmaker and key Huawei supplier, which announced plans to build a U.S.-based plant on Thursday.
“There has been a very highly technical loophole through which Huawei has been in able, in effect, to use U.S. technology with foreign fab producers,” Commerce Secretary Wilbur Ross told Fox Business News on Friday, calling the rule change a “highly tailored thing to try to correct that loophole.” Despite the crackdown, the Commerce Department separately extended a temporary license that was set to expire on Friday to allow U.S. companies, many of which operate wireless networks in rural America, to continue doing business with Huawei through Aug. 13. It warned it expected this would be the final extension.
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