TSMC has stopped taking new chip orders from Huawei following the US ban on the sale of chips that have been made using US technology, reports the Nikkei,

TSMC responded to the report saying it was based on  ‘market rumours’ but it did not deny them.

Washington had banned anyone selling chips to Huawei which hsd ben msde on US  chip,manufacturing equipment or designed using US EDA.

Orders from Huawei which TSMC took before the  ban and wafers currently in production can still be shipped so,long as they are despatched before the middle of September.

TSMC had earlier said it was ‘following the U.S. export rule change closely”.

Huawei is TSMC’s second biggest client after Apple accounting for 15-20% of TSMC sales.

Before the ban, Huawei did a chip co-design and co-production deal with ST which some saw as a way to get round any ban by using ST’s access to US technology.