The deployment of 5G creates an immense opportunity, and being part of Huawei’s supply chain during its current phase of "de-Americanization" offers a positive growth outlook for the Taiwanese tech sector.
But there is one troublesome area for the Chinese company. Industry experts underline that the worst challenge for Huawei is access to Field Programmable Gate Arrays (FPGA), a crucial element for building base stations. Today, Huawei’s only two suppliers are American – Xilinx and Altera. Huawei has built stocks but its plan is to replace FPGA with ASIC processing, a technology currently being developed by… Taiwan Semiconductor Manufacturing Company (TSMC). If exemptions are removed, Huawei’s 5G smartphone business is more likely to be affected by American export control restrictions than its telecommunication equipment business.