The US government has moved to block shipments of semiconductors to Huawei Technologies from global chipmakers, in an action ramping up tensions with China.
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The US Commerce Department said it was amending an export rule to "strategically target Huawei's acquisition of semiconductors that are the direct product of certain US software and technology".
The reaction from China was swift with a report saying it was ready to put US companies on an "unreliable entity list," as part of countermeasures in response to the new limits on Huawei, China's Global Times reported on Friday.
The measures include launching investigations and imposing restrictions on US companies such as Apple Inc, Cisco Systems Inc, Qualcomm Inc as well as suspending purchase of Boeing Co planes, the report said, citing a source.
The Commence Department said its "announcement cuts off Huawei's efforts to undermine US export controls".
The rule change is a blow to Huawei, the world's no 2 smartphone maker, as well as to Taiwan's Taiwan Semiconductor Manufacturing Co Ltd, a major producer of chips for Huawei's HiSilicon unit as well as mobile phone rivals Apple and Qualcomm. TMSC announced late on Thursday it would build a $US12 billion ($A19 billion) chip factory in Arizona.
TSMC said on Friday it is "working with outside counsels to conduct legal analysis and ensure a comprehensive examination and interpretation of these rules. We expect to have the assessment concluded before the effective date," the company said, adding the "semiconductor industry supply chain is extremely complex and is served by a broad collection of international suppliers.
Huawei, which needs semiconductors for its widely used smartphones and telecoms equipment, is at the heart of a battle for global technological dominance between the United States and China.
Australian Associated Press