Supply chain
Highlights of the day: TSMC reportedly moves to reduce reliance on Huawei

The US has been mounting pressure on its allies over its trade ban on Huawei, which has in turn been shaking the IT supply chain. The world's top pure-play foundry TSMC, with Huawei being one of its major clients, reportedly is moving to reduce its reliance on the Chinese tech giant. But TSMC's clients should be rest assured that the foundry house will be able to maintain smooth operations despite the coronavirus outbreak in China, which is home to only a small portion of its capacity. Most other ICT and semiconductor firms that have heavily relied on production in China are having difficulties resuming normal production. Among them are suppliers of CIS and chip resistors, which are running out of supply, with prices set to go up. SSD retail prices in China are also rising unexpectedly, as channel distributors are now reluctant to sell amid concerns of supply chain disruptions.

TSMC cuts chip capacity support for Huawei, say sources: TSMC has started reducing its chip capacity support for Huawei, but is still working closely with the China-based vendor in the development for advanced 5nm and 3nm chip solutions, according to industry sources.

CIS, chip resistor shortages emerging: The coronavirus outbreak in China has further tightened supply of CMOS image sensors (CIS) and chip resistors, with severe shortages set to surface and price hikes to follow, according to industry sources.

SSD retail prices rally in China beyond expectation: SSD retail prices in China have been rising unexpectedly, as channel distributors have become reluctant to sell amid worries about possible supply chain disruptions caused by the coronavirus outbreak, according to industry sources.

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