Huawei faces ‘impossible’ challenge after latest US tech sanctions, say analysts

[CAPRICORN-88]

Impossible challenge???
It is just a hiccup. An entire USA nation took on Huawei and it is still among the top.
Stop fooling yourself.
US is no Captain Marvel.

This is how USA ripped the rest of the world off.



When you must read this and you will understand why USA fear Huawei 5G technology so much.

Edward Snowden book has revealed all the malfeasance of US Government..

USA has been stealing technologies from the competitors and illegally patenting it theirs. That is why USA cannot successful implemented their projects. They were stolen design.

Examples of US industrial espionage

In 1999, Enercon, a German company and leading manufacturer of wind energy equipment, developed a breakthrough generator for wind turbines.
After applying for a US patent, it had learned that Kenetech, an American rival, had submitted an almost identical patent application shortly before. By the statement of a former NSA employee, it was later discovered that the NSA had secretly intercepted and monitored Enerson's data communications and conference calls and passed information regarding the new generator to Kenetech.

As German intelligence services are forbidden from engaging in industrial or economic espionage, German companies are frequently complaining that this leaves them defenceless against industrial espionage from the United States. According to Wolfgang Hoffmann, a former manager at Bayer, German intelligence services are aware which companies are being targeted by US intelligence agencies, but refuse to inform the companies involved.

 

[Beast]

I hope Indian government ban Chinese products once for all.

BTW these Chinese tech spy are danger to world peace and should be banned.

Honor is still one of the best seller in India.
You expect all Indian to get an iPhone?

 

[Beast]

Impossible challenge???
It is just a hiccup. And entire USA took on Huawei and it is still among the top.
Stop fooling yourself.
That is how USA ripped the rest of the world.



When you must read this and you will understand why USA fear Huawei 5G technology.
Edward Snowden book has revealed all the malfeasance of US Government..

USA has been stealing technologies from the competitors and illegally patenting it theirs. That is why USA cannot successful implemented their projects. They were stolen design.

Examples of US industrial espionage

In 1999, Enercon, a German company and leading manufacturer of wind energy equipment, developed a breakthrough generator for wind turbines.
After applying for a US patent, it had learned that Kenetech, an American rival, had submitted an almost identical patent application shortly before. By the statement of a former NSA employee, it was later discovered that the NSA had secretly intercepted and monitored Enerson's data communications and conference calls and passed information regarding the new generator to Kenetech.

As German intelligence services are forbidden from engaging in industrial or economic espionage, German companies are frequently complaining that this leaves them defenceless against industrial espionage from the United States. According to Wolfgang Hoffmann, a former manager at Bayer, German intelligence services are aware which companies are being targeted by US intelligence agencies, but refuse to inform the companies involved.

Wolf crying other as one. Totally shameless.

 

[CAPRICORN-88]

Nothing has been done at this scale. The US is cutting off Huawei from nearly every semiconductor in the world.

And you are mighty proud of US version of FREEDOM and FREE TRADE.

Imagine USA that is ranking 26th in World Freedom Index teaching the 3rd ranking Hong Kong about FREEDOM or DEMOCRACY.

No wonder the world stop respecting USA and Americans as well.

Is USA prepared to accept the 15 or 150 million Chinese migrant offered by the late Deng Xiaoping in reply to Henry Kissinger?

 

[Han Patriot]

Nothing has been done at this scale. The US is cutting off Huawei from nearly every semiconductor in the world.

It's been 2 years, Huawei has not collapsed, ZTE is still standing. Hmmmm

 

[bolo]

It's been 2 years, Huawei has not collapsed, ZTE is still standing. Hmmmm

He post a lot of opinion news for years now. None has ever come true. I think he lost his job recently and having personal issues. Let him be.

 

[Paul2]

It's been 2 years, Huawei has not collapsed, ZTE is still standing. Hmmmm

Both ZTE, and Huawei have enough of cash to sit, and do nothing for 4-5 years, while keeping paying employees full salaries. So, even in the worst case scenario, nobody talks of them disappearing, and Beijing will give them handouts with ease.

The problem here is not Huawei per se if you think. It's China being so isolated. Were this happen 10 years ago, USA would've been given a middle finger by everybody, blue bros across the strait included.

The state can give Huawei, and ZTE cash, and they will surely find alternative IC sources, but what would be the point if they can't sell their products anywhere? The Chief Accelerator must know.

 

[Feng Leng]

It's been 2 years, Huawei has not collapsed, ZTE is still standing. Hmmmm

ZTE was a poorly managed company in the first place. After getting penalized by the Americans, they are now just a zombie remote controlled by America.

 

[zhxy]

ZTE was a poorly managed company in the first place. After getting penalized by the Americans, they are now just a zombie remote controlled by America.

The phoenix will be reborn from the ashes

 

[Han Patriot]

Both ZTE, and Huawei have enough of cash to sit, and do nothing for 4-5 years, while keeping paying employee salaries. So, even in the worst case scenario, nobody talks of them disappearing, and Beijing will give them handouts with ease.

The problem here is not Huawei per se if you think. It's China being so isolated. Were this happen 10 years ago, USA would've been given a middle finger by everybody, blue bros across the strait included.

The state can give Huawei, and ZTE cash, and they will surely find alternative IC sources, but what would be the point if they can't sell their products anywhere? The Chief Accelerator must know.

The largest telco market is China numb numb. You think they are just gonna sit there doing nothing, its been 2 years, and Huawei is still not dead, now they are getting state technology for chip fabrication, the state tech power is behind them.

 

[CAPRICORN-88]

Both ZTE, and Huawei have enough of cash to sit, and do nothing for 4-5 years, while keeping paying employees full salaries. So, even in the worst case scenario, nobody talks of them disappearing, and Beijing will give them handouts with ease.

The problem here is not Huawei per se if you think. It's China being so isolated. Were this happen 10 years ago, USA would've been given a middle finger by everybody, blue bros across the strait included.

The state can give Huawei, and ZTE cash, and they will surely find alternative IC sources, but what would be the point if they can't sell their products anywhere? The Chief Accelerator must know.

China being isolated or in reality a case of USA being ostracized.

Trump and Mike Pompeo must be raging mad and ripping their hairs after losing the UN vote for extending the arm embargo against Teheran at the UN.

So why did US closest allies all abstained?
It is a signal of dissent and growing resentment among US allies.

When the opponent played dirty and breached all international trading rules, you think the spectators will be still cheering for them like brainless zombies.
You underestimate the rest of the world.

In fact most MNC in USA are now evaluating and managing the risks management of doing businesses in USA and Trump is beginning to be the real liability to them.

Imagine a Socialist country like China that turned out to be more law abiding and capitalist than USA.

 

[antonius123]

It seems even SMIC is still depending on US tech and become vulnerable. Huawei realize it, thats why Huawei is trying to establish their own independent technology though for the older 45nm. This 45nm will be fine for 5G equipment, and the more important thing is "independent technology" therefore won't be subject to US sanction.

 

[CAPRICORN-88]

In 1960 after Russia cuts off all its ties with China and Zhou Enlai said.
"The food that we prepare will always be the most tasty and reliable."
What Trump did today has serious repercussion for the future of USA and it is not just Huawei alone that is affected but the entire supply chain.
I am quite amazed and excited at the revelation as China announced new breakthrough practically every week and month.
What China lacks is neither expertise or knowhow but demands.
Trump has created home demand and new opportunity for these Chinese foundries and equipment makers.

By the end of this year SMIC will be test running its initial production of 7nm node chips. Nothing is impossible to the Chinese once they set their mind into it.

Called it nationalism or whatever, Trump USA better be careful what it wished for.

 

[macnurv]

After the US further tightened restrictions on Huawei Technologies’ access to semiconductors on Monday, analysts had only one word to describe the situation faced by China’s telecoms champion: Impossible.

The new rules, designed to prohibit Huawei from bypassing earlier sanctionsby sourcing products via third party buyers, will essentially choke off the company’s ability to acquire semiconductors developed or produced using US technology.

“It’s hard to imagine how Huawei can turn the tables now,” said Yang Guang, director of service provider research at Strategy Analytics. “All the power of one company cannot build the entire industrial chain by itself. It is impossible.”

The latest move from the Trump administration further complicates the battleground in the US-China tech war, which has widened from semiconductors and next-generation 5G wireless networks to apps and cloud services in recent weeks.

With its avenues for sourcing critical semiconductors to power its 5G base stations, smartphones and now its cloud computing business shut off, analysts said there were very few options left.

Unless US suppliers can obtain license approvals to resume selling to the Chinese company, “the new restrictions have critically damaged Huawei's supply chain, especially chipsets for its smartphone and cloud business, as well as its innovation lab operations worldwide,” according to Charlie Dai, principal analyst at Forrester.

Ironically, Huawei’s best hope might now be pressure from US chip suppliers like Qualcomm, which once counted Huawei as a major customer before the Chinese company began producing its own chips for smartphones.


Qualcomm has been lobbying the US government for permission to sell its chips to Huawei, including high end devices for 5G smartphones, according to The Wall Street Journal.

“One possible solution for Huawei is to buy chips from Qualcomm and Taiwan-based fabless semiconductor company MediaTek, if [they] manage to apply for a license from the US … allowing them to continue to sell chips to Huawei,” said Xia Yizhe, a Shanghai-based semiconductor analyst at EqualOcean.

Qualcomm, which earns the bulk of its profit from licensing patents for modern phone systems, announced last month a new licensing deal with Huawei after the Chinese company agreed to a lump-sum payment to settle years-long licensing disputes between the two parties.


“US suppliers to Huawei are no doubt going to lobby against this [new rule] or fight for a license [so they will] be exempt again,” said Art Dicker, director at R&P China Lawyers, a Shanghai-based law firm.

The latest ruling does not mean the US government will “100 per cent cut off Huawei’s chip supply”, according to Jia Mo, an analyst from research agency Canalys. “Its main purpose is to take control; it’s up to the US government whether Huawei can or cannot buy the chips and who can sell the chips to Huawei,” he said.

In any case the alternative - Huawei building its own wafer foundry free of US core technology - invokes the “i” word again. “It’s impossible for Huawei to circumvent US bans or build a foundry completely free of US equipment or technology,” said Sheng Linghai, a semiconductor analyst at research firm Gartner.


Gu Wenjun, chief analyst at Shanghai-based semiconductor research firm ICwise, said Huawei’s only long term option was to build a complete semiconductor supply chain itself but agreed that it would be “mission impossible to build a semiconductor foundry without using any US technology”.

Huawei did not immediately reply to a request for comment.

The latest ruling by the US Commerce Department builds on similar restrictions issued in May when it refined its regulations to include chips that were the direct product of semiconductor manufacturing equipment located outside the US. That meant Huawei’s major wafer foundry supplier, Taiwan Semiconductor Manufacturing Co, needed to apply for a license to supply chips to Huawei.


China lags the US in advanced semiconductor technologies, from the chip design software and semiconductor manufacturing equipment to the foundry process technologies, which all require a huge investment in time and money to develop.

In early August, Richard Yu Chengdong, chief executive of Huawei’s consumer business group publicly admitted that the company may not be able to ship handsets with its high-end Kirin chips after this year owing to US trade sanctions.

“We are in a difficult situation … Huawei’s smartphones have no chip supply,” Yu said at the China Info 100 conference. “This year may be the last generation of Huawei Kirin high-end chips … This is a big loss for us.”


Yang at Strategy Analytics said Huawei might need to find new growth opportunities in businesses that are not so reliant on semiconductors that use advanced process nodes, such as personal computers, smart displays and cloud services.

“But whether these segments can make up the losses from its core businesses, it remains to be seen,” he said.

However, Yang said based on the current state of US-China tech tensions, cloud services were no less sensitive than 5G telecoms gear, which was what got Huawei targeted in the first place.


Some are not so pessimistic about Huawei’s long term prospects. “More restrictions on Huawei do not spell the end for the company,” said Gary Yang, a founding partner at Beijing-based venture capital firm Sky Saga Capital, who recently met Huawei’s senior executives in Shenzhen. “It will only make it more difficult for Huawei to trade with US suppliers for their technology and chips.”

On Monday the US Commerce Department added another 38 Huawei affiliates to its Entity List, banning them from purchasing US products. The affiliates, in 21 different countries, included Huawei Cloud Computing Technology and Huawei Cloud Beijing.

In a separate “Clean Network” campaign launched early this month, the US aimed to prevent sensitive personal information of US citizens and intellectual property of businesses – including Covid-19 vaccine research – from being stored and processed on cloud computing platforms run by Chinese companies like Alibaba Group Holding, China Mobile, China Telecom, Baidu and Tencent.

https://www.scmp.com/tech/big-tech/...-challenge-after-latest-us-tech-sanctions-say

I am not sure if you're really an American but damn your propaganda skills are at same level as that of North Korea or Vietnam. Seriously dude, your desperation is too obvious now.

 

[AViet]

Good lucks to our Chinese brothers. You will overcome this hiccup.