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How important is TSMC to Huawei?
TSMC is very important to our country. TSMC is one of the largest semiconductor foundry companies in the world, and now semiconductor chips are needed in both mobile phones and artificial intelligence fields. The whole process of chip manufacturing can be divided into design stage, OEM stage and packaging test stage. Therefore, from the design of semiconductor chips to the final packaging, many different companies need to follow the process. Companies that design one-stop service for OEM packaging testing mainly include Intel, Texas Instruments and Samsung. Companies only responsible for design, the most famous ones include Hayes and Qualcomm. Only responsible for the foundry and packaging test of chips, the representative of such companies is TSMC.

Chip OEM influences chip design in China. Since its establishment, TSMC has acted completely according to its own ideas. At that time, semiconductor companies all over the world still followed the concept of integrated services. It is this kind of integration that invisibly raises the high threshold of the industry and discourages many companies. Professional semiconductor design companies need intellectual support, and OEM and packaging need a lot of financial support. At that time, many small companies with potential could not develop because they were monopolized by large companies. TSMC was born under this business model, and a large number of design companies have mushroomed and achieved great development, achieving a win-win situation in design and manufacturing. However, there are many chip design companies in China, which are unable to provide integrated services due to the lack of a large amount of financial support. TSMC has revitalized the living space of domestic chip design companies and promoted the development of chips in China.

TSMC opposes the US ban. As we all know, the United States imposed economic sanctions on Huawei and ZTE in China. However, although TSMC's foreign shareholding ratio is relatively high, it has strengthened its investment in China and provided sufficient supply for Huawei and other enterprises. With the intensification of US sanctions, TSMC reduced the supply of low-end chips, but high-end chips were not affected. At present, SMIC, the largest chip foundry in China, has also joined in. Therefore, China's chip foundry still can't get rid of TSMC in a short time.