Taiwan’s TSMC says demand from China’s Huawei falling

TSMC Nanjing fab not running at full capacity: Liu

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TSMC Chairman Mark Liu (center) speaking at Wednesday's shareholders' meeting

TSMC Chairman Mark Liu (center) speaking at Wednesday's shareholders' meeting (By Central News Agency)

TAIPEI (Taiwan News) – Taiwan Semiconductor Manufacturing Co. (TSMC), the largest contract chipmaker in the world, said Wednesday (June 5) that demand from embattled Chinese electronics giant Huawei Technologies had been slipping.

The Taiwanese company came under fire earlier in the week for continuing to work with Huawei despite worldwide moves to curtail its influence due to its close connections with the Chinese government amid fears about industrial espionage.

At a shareholders’ meeting in Taipei City Wednesday, TSMC Chairman Mark Liu (劉德音) said orders from Huawei had been falling this year, due to a drop in demand for high-end smartphones, the Central News Agency reported.

The TSMC plant in Nanjing was not running at full capacity, said Liu, who was speaking at the first shareholders’ meeting since company founder Morris Chang (張忠謀) retired last year.

Responding to the accusations, the new chairman also emphasized that all supplies to Huawei would correspond to legal restrictions, and that the company’s current policies would not be revised. If there was an opportunity, he was willing to explain TSMC’s actions to anyone who harbored any doubts, Liu said.

Despite the trade war between the United States and China, the chairman said that prospects for the economy were still good, with each quarter improving on the previous one, and the second half of 2019 better than the second half of 2018, CNA reported.