Huawei ban puts $26bn at risk for Japan, South Korea and Taiwan

Sony, TSMC and MediaTek risk losing major customer if production shuts down

20200909N Huawei

The Huawei logo is seen at the IFA consumer technology fair in Germany. © Reuters

KOSUKE SHIMIZU, Nikkei staff writer

TOKYO -- The new U.S. sanctions against Huawei Technologies that take effect on Tuesday threaten to cripple production at a company that suppliers in Japan, Taiwan and South Korea depend upon for parts sales worth tens of billions of dollars annually.

The Commerce Department action announced last month essentially bars companies from providing Huawei with any semiconductors made using U.S.-produced equipment or design software. Chip designers frequently use electronic design automation tools created in the U.S., and chipmaking gear that incorporates American technology is common in advanced semiconductor fabrication facilities.

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