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Washington's move to ban U.S. companies from doing business with China's Huawei Technologies will have a short-term impact on Taiwan's TSMC, its chairman said on Wednesday, although he was upbeat on the outlook for this year. TSMC previously said shipments to its main client Huawei were not affected by U.S. action aimed at curbing the telecom equipment maker's access to American technology, and that it would continue to be a supplier to Huawei. "It certainly will have some impact in the short term," TSMC Chairman Mark Liu told reporters at the company's annual general meeting in the technology hub of Hsinchu.

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