Dungeness
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There would be lots of pink slips flying all over Silicone Valley.
QUOTE:
COULD THIS BACKFIRE?
Huawei is already the biggest global supplier of networking equipment, and is now likely to move toward making all components domestically. China already has a policy seeking technological independence by 2025.
U.S. tech companies, facing a drop in sales, could respond with layoffs. More than 52,000 technology jobs in the U.S. are directly tied to China exports, according to the Computing Technology Industry Association, a trade group also known as CompTIA.
END QUOTE:
We can open up a front on patents. Patent-free medicine sold worldwide will bankrupt the American pharma industry.
a better idea - work with the western countries
I am sure Chinese government has ways to make TSMC inline. It is not a chess game, it is a GO game.--I am not sure. because TSMC in taiwan , new we have nothing to do.It may appear as a fight between Huawei vs USA, but it is actually China vs USA. I am sure Chinese government has ways to make TSMC inline. It is not a chess game, it is a GO game.
yes,but now not as advanced as they areDoes china has Fabs that can match TSMC and samsung?
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
With the necessity in China to develop an independent supply chain, i don't be surprise if the don't have billions at their disposal to create this supply chain, from the government and Chinese investors.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![]()
Prediction coming true.QUOTE:
COULD THIS BACKFIRE?
Huawei is already the biggest global supplier of networking equipment, and is now likely to move toward making all components domestically. China already has a policy seeking technological independence by 2025.
U.S. tech companies, facing a drop in sales, could respond with layoffs. More than 52,000 technology jobs in the U.S. are directly tied to China exports, according to the Computing Technology Industry Association, a trade group also known as CompTIA.
END QUOTE: