Exclusive: U.S. moves to cut Huawei off from global chip suppliers

[F-22Raptor]

“This will have a very substantial impact on Huawei’s ability to manufacture chips both in its smartphones as well as in its base stations, which make up 85 or 90% of its overall revenue,” said Beijing-based Gavekal Dragonomics analyst Dan Wang. “There’s quite a big possibility that these rules will cut off almost 90% of its revenue.”

Last year, citing those concerns, the U.S. put Huawei on an “Entity List,” requiring U.S. companies to obtain a special license to sell products to the Chinese company. The move has largely frozen Huawei out of getting some of the computer chips it needs to make equipment integral to new high-speed wireless networks.

Huawei continued to use U.S. software and technology to design semiconductors by their production in overseas facilities using U.S. equipment, Ross said in a statement Friday.

A Huawei representative said the company had no immediate comment.

Materials in production today will get a 120 day grace period to not interrupt business continuity, a senior U.S. Commerce Department official said.

A senior State Department official said the action doesn’t mean all licenses will be denied.

More U.S. restrictions could inflict further damage on Huawei. The Shenzhen-based company in April reported growth had all but evaporated in the first quarter, after the Covid-19 pandemic wiped out demand for the gadgets that drive its revenue. Huawei’s HiSilicon is capable of crafting cutting-edge semiconductors that power its mobile devices and base stations, a key part of 5G infrastructure, but it depends on TSMC for production. Huawei may able to source some of its lower-end chip orders back to local foundry Semiconductor Manufacturing International Corp., but has no recourse in the advanced processors for which TSMC was the sole manufacturer.

https://www.bloomberg.com/news/arti...s-rules-to-crack-down-on-huawei-s-chip-supply

 

[Song Hong]

Not morality but the cornerstone of USA evangelism, that includes free market capitalism, free trade, Ricardo comparative advantage.

Now USA goes into central planning.

Morality is a useless argument. The US has 5 years to stop China's rise. If things continued as they had, China would be far too strong 5-8 years from now. Morality is a worthless argument.

 

[tower9]

Not morality but the cornerstone of USA evangelism, that includes free market capitalism, free trade, Ricardo comparative advantage.

Now USA goes into central planning.

The Trump administration is an informal admission that Free Trade was an idiotic policy which allowed corporate profits to take precedence over geopolitical interests. Trump is laying by the Chinese playbook of state capitalism and nationalism in fighting China.

 

[kankan326]

Morality is a useless argument. The US has 5 years to stop China's rise. If things continued as they had, China would be far too strong 5-8 years from now. Morality is a worthless argument.

US can not stop China. China's economic progress is just something on the surface. The thing that sustains the progress is China's education and science progress. Which can not be stopped by commercial methods.

 

[Song Hong]

As I have argued many times, the options of using shooting war or national security as an argument to support protectionism are always in the mind of US planners.

Trade was promoted when US falsely assume she is the stronger party. Before UK promotes free trade in pax Britainia.

But the reality turns out that the China is the stronger party and US is the weaker.

The Trump administration is an informal admission that Free Trade was an idiotic policy which allowed corporate profits to take precedence over geopolitical interests. Trump is laying by the Chinese playbook of state capitalism and nationalism in fighting China.

US is more a cabal and national capitalism than anyone else masquerade as adherent of friedman.

The TBTF banks, Boeing, car makers are bail out repeatedly.

 

[tower9]

US can not stop China. China's economic progress is just something on the surface. The thing sustains the progress is China's education and science progress. Which can not be stopped by commercial methods.

View attachment 632651

The US cannot totally stop China's economic progress but it can severely slow it down. Let's just say this, without dramatic action, China would've become a global economic superpower within 10 years. But with this virus and a possible shooting war, which is definitely possible now, China will need 60 years.

 

[kankan326]

The US cannot totally stop China's economic progress but it can severely slow it down. Let's just say this, without dramatic action, China would've become a global economic superpower within 10 years. But with this virus and a possible shooting war, which is definitely possible now, China will need 60 years.

America won't last 60 years if the worst scenario happens. China will be still there, as it did in last several thousand years.

 

[Song Hong]

US ban Huawei from TSMC.

China can ban tungsten and rare earth.

“This will have a very substantial impact on Huawei’s ability to manufacture chips both in its smartphones as well as in its base stations, which make up 85 or 90% of its overall revenue,” said Beijing-based Gavekal Dragonomics analyst Dan Wang. “There’s quite a big possibility that these rules will cut off almost 90% of its revenue.”

Last year, citing those concerns, the U.S. put Huawei on an “Entity List,” requiring U.S. companies to obtain a special license to sell products to the Chinese company. The move has largely frozen Huawei out of getting some of the computer chips it needs to make equipment integral to new high-speed wireless networks.

Huawei continued to use U.S. software and technology to design semiconductors by their production in overseas facilities using U.S. equipment, Ross said in a statement Friday.

A Huawei representative said the company had no immediate comment.

Materials in production today will get a 120 day grace period to not interrupt business continuity, a senior U.S. Commerce Department official said.

A senior State Department official said the action doesn’t mean all licenses will be denied.

More U.S. restrictions could inflict further damage on Huawei. The Shenzhen-based company in April reported growth had all but evaporated in the first quarter, after the Covid-19 pandemic wiped out demand for the gadgets that drive its revenue. Huawei’s HiSilicon is capable of crafting cutting-edge semiconductors that power its mobile devices and base stations, a key part of 5G infrastructure, but it depends on TSMC for production. Huawei may able to source some of its lower-end chip orders back to local foundry Semiconductor Manufacturing International Corp., but has no recourse in the advanced processors for which TSMC was the sole manufacturer.

https://www.bloomberg.com/news/arti...s-rules-to-crack-down-on-huawei-s-chip-supply

 

[F-22Raptor]

US ban Huawei from TSMC.

China can ban tungsten and rare earth.

If its true this ban will cut off 90% of revenue, then Huawei is in deep sh*t.

 

[Song Hong]

No fab can work without rare earth.

If its true this ban will cut off 90% of revenue, then Huawei is in deep sh*t.

 

[kankan326]

If its true this ban will cut off 90% of revenue, then Huawei is in deep sh*t.

Are you sure the ban will cut off 90% Huawei revenue? Huawei supplies various products. Communication equipment, chips, computers, phones, TV.... The biggest market of all the products is China.

 

[riscol]

Let me guess Huawei is finished? We heard this many times before.

Incoming news F-22Raptor just perished https://defence.pk/pdf/threads/f22-raptor-crashes-at-eglin-afb.666498

 

[Viet]

Morality is a useless argument. The US has 5 years to stop China's rise. If things continued as they had, China would be far too strong 5-8 years from now. Morality is a worthless argument.

There is a way to stop China!

China economic rise began with her entry to WTO. 99 of 100 biggest Chinese companies are in the hands of Ccp. If the US can kick the chinese out of the WTO, and can exclude them from the international capital markets, that will be the end of chinese miracle.

Kicking Huawei out of global supply chain is like kindergarten in comparison.

However that takes time.

the quickest way to destroy China economy is cutting China off the US dollar market.

 

[tower9]

There is a way to stop China!

China economic rise began with her entry to WTO. 99 of 100 biggest Chinese companies are in the hands of Ccp. If the US can kick the chinese out of the WTO, and can exclude them from the international capital markets, that will be the end of chinese miracle.

Kicking Huawei out of global supply chain is like kindergarten in comparison.

However that takes time.

the quickest way to destroy China economy is cutting China off the US dollar market.

If the US could accomplish these goals with ease, they would've already been done. Unfortunately all of these come with repercussions. The US cannot single handedly remove China from the WTO. China has already become the world's largest trading nation. Even many of America's allies now trade with China more than they trade with the US and many of these will need to rely on that trade to help them recover from this disaster.

Secondly, if the US were to cut off China from the dollar market, this will cause a severe disruption and financial disaster for the US itself. It will also push for the wholesale adoption of the Petro Yuan and Digital Yuan which would accelerate the end of the USD as a reserve currency. When you take into account that China is the world's largest trading nation, this means that the USD as a reserve currency will take a huge hit. Cutting China out, will make the use of the Petro Yuan and Digital Yuan mainstream overnight and this may cause even other countries which are resentful of the US from Russia to Iran to Venezuela, etc to start using those currencies even in trade that doesn't involve China.

The end of the USD as reserve currency will bring about a sudden collapse of the US empire, that is guaranteed. Even Trump wouldn't be dumb enough to risk this.

 

[Yongpeng Sun-Tastaufen]

China has huge soft power in the world. The US cannot stop China.