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Does china has Fabs that can match TSMC and samsung?
The best semiconductor foundry that China owns is SMIC, listed in 2019 Q1 as 5th largest in the world, but it only has 1/10 of market share of TSMC. SMIC is capable of 14nm process, and its tech is about 2 generations behind TSMC.
Can Kirin's next generation chip fall back on 14nm process, if the worst
TRADE WAR
Huawei does not need US chips: CEO on Trump export ban Chinese telecom giant will resist Washington pressure, Ren Zhengfei says
ATSUSHI NAKAYAMA, Nikkei commentatorMAY 18, 2019 22:05 JST
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Huawei Technologies CEO Ren Zhengfei says Huawei would be "fine" even if Qualcomm and other American suppliers would not sell chips to Huawei, because "we have already been preparing for this."
SHENZHEN, China -- Huawei Technologies' founder and chief executive blasted the Trump administration's decision to add his company to a government blacklist, insisting the Chinese telecom equipment maker has done nothing illegal.
"We have not done anything which violates the law," CEO Ren Zhengfei told Japanese media at company headquarters in Shenzhen on Saturday in his first interview since the U.S. decision to restrict trade with the Huawei.
Ren indicated that his company will continue developing its own chips to lessen the impact of the ban on its production. Ren said it would be "fine" even if Qualcomm and other American suppliers would not sell chips to Huawei. "We have already been preparing for this," he said.
Huawei unit HiSilicon Technologies, which mainly designs core processor chips, has made similar allusions to plans for dealing with a potential disruption in supply. In a recent open letter, President Teresa He Tingbo wrote, "We actually have foreseen this day for many years, and we do have a backup plan."
Echoing his tougher tone in recent months, Ren said his company will not be dictated to by Washington. "We will not change our management at the request of the U.S. or accept monitoring, as ZTE has done," he said.
The U.S. deployed a similar ban against ZTE last year, pushing the Chinese telecom company to the brink of bankruptcy.
Ren said the impact of the U.S. ban on Huawei's business will be limited, and expressed confidence in its longer-term outlook. "It is expected that Huawei's growth may slow, but only slightly," said Ren, citing the potential of annual revenue growth undershooting 20%.
"Policies that threaten trading partners one after another rob companies of risk-taking attitudes, and the U.S. will lose credibility," said Ren. On the other hand, he sees U.S. President Donald Trump's trade policies providing the impetus for Chinese economic reforms. "I would even suggest that the environment will improve," said Ren.
Huawei's chief shot down the prospect of producing 5G equipment on American soil. "Even if the U.S. asks us to manufacture over there, we will not go," said Ren.
Huawei procures around $67 billion worth of components every year, with roughly $11 billion coming from U.S. suppliers. Huawei depends especially on American parts makers for semiconductors, and it is believed that the company could face problems going forward manufacturing smartphones and telecommunications equipment.
Huawei does not need US chips: CEO on Trump export ban - Nikkei Asian Review
But what If the Chinese government calls in its debt. Then USA will be bankrupt overnight.If he means not just designing or manufacturing the chips but the whole supply chain including etching and light lithography machines, we are talking about a revolution here. Quite frankly, I don't think such a revolution could be possible without ignoring existing patents. The trade war is evolving into the biggest patent dispute in human history. USA is going to freeze bank accounts of Chinese companies like they did to Iran before.
Google just pulled the Android rug under the feets of Huawei. I'm sorry to say... But that's game over for Huawei.
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For a company that started preparing for "The worse case scenario" 10 years ago, I am sure they knew what "the worst case scenario" would be like. They definitely have Plan B, or even Plan C. Wait and see.
By now, we know what American advocated "Free Market Economy" actually means.![]()
No plan A, B, or C would work... Unless you have the Apps everyone uses. Hardware is secondary.
The problem is the app adoption which currently exclusively lies with Google or android.
The only other alternative is that Huawei puts aside $30 Billion dollars backed by the Chinese government to get all the app developers such as Skype, WhatsApp, snapchat, twitter etc. To make apps for the Unix/Linux based fork of Android.
Then and only then will Huawei will have an alternative OS platform... But this will be difficult because Nokia, BlackBerry, and Microsoft tried this and failed miserably.
Only BiG Money $$$ can make this happen.
What commercial brand? Care to share your expertise?It did
Even an Indian lab? Lolol. Semiconductor industry is not existent in India ok. As for Huawei, let time prove their worth. Alibaba actually created AliOS many years back but the adoption was low.Huawei claims are really curious. There is no magic in designing and fabricating a chip. Even an indian lab could perhaps produce one chip for 100,000 USD. The challenge is to mass produce them at un beatable price while still making a large enough profit to further invest in research. Intel can perhaps mass produce the same chip for $400 while making a cool $250 as profit.
Even if Huawei developed all the infrastructure in the whole chain like photo lithography etc how could they possibly do it at a price say Intel cal ? I think what they mean is they are willing to spend more and still sell to world at competitive prices which means take a loss and subsidize world at china's cost. Now there is nothing profoundly wrong with it. Many countries do it - USA does it in agriculture for eg.
But if huawei really built an industrial ecosystem of chip fabrication at world competitive prices - all under shadows. Then they surely have some dark magic![]()