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Huawei inks deal in Shanghai to create its own microchips

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Huawei inks deal in Shanghai to create its own microchips
Tech giant will cooperate with China-based chipmaker SMIC and Shanghai Microelectronics to 'break the US monopoly' of foreign semiconductor fabs
by Chris Gill

(ATF) The US has worked aggressively to halt the global supply of microchips to Chinese tech firm Huawei. As the company was originally formed from part of the PLA – the People's Liberation Army – during China's drive to modernise in recent decades, Huawei has always been regarded as a semi-autonomous firm, with a strong allegiance to the Chinese Communist Party.
Within this context, Huawei HiSilicon has proposed that its Kirin series chips, that have been developed over a number of years, go into production. Huawei CEO Ren Zhengfei expressed gratitude to the United States for giving the company a real opportunity to develop this product.

It is estimated that Huawei has a big stockpile of chip which will tide it over while it develops its own. In addition, Huawei had intended to achieve a win-win cooperation deal with TSMC, a Taiwan-based chipmaker, but the USA put the kybosh on that.

So, Huawei had to come up with a strategy to cooperate with China-based chipmaker SMIC. However, SMIC lacks capacity and the scale of technology to meet Huawei’s needs.

But now Shanghai Microelectronics has announced it will step into the breach and manufacture the technology that SMIC is missing. If the company can achieve its aim, it will "break the monopoly" of foreign semiconductor fabs.

Throughout the confrontation between Huawei and the United States, the firm has more or less conducted business as usual.

Approval for UK R&D facility
A deal has been signed to build a more than £1-billion research facility in Cambridge Silicon Fen in England. Recently, the South Cambridgeshire District Council in the United Kingdom held a remote planning meeting and approved the construction plan for Huawei's R&D centre, which will become the global headquarters of Huawei's opto-electronic business.

And the UK government has finally given the nod to allow Huawei to participate in Britain's 5G network.

Huawei also has plans for a PC chip design to rival Apple, AMD and Intel.

Today, Huawei mainly depends on the chip supply from SMIC, but the shortage of high-end machines is a major problem for the tech giant. Dutch ASML companies are subject to interference via the shares of American companies and are unable to provide advanced products to China.

As of now, the Shanghai Microelectronics has launched its first domestic machine, using ARF technology, which it says can fully meet the current needs of SMIC.

According to experts, the advanced machinery launched by Shanghai Microelectronics can accurately produce 11-nanometer chips, although the current large demand for Huawei is mainly supplying 14-nanometer chips.

And, based on this new breakthrough, Shanghai Microelectronics is also advancing to a 7-nanometer chip process. After one more step, the company says it will have machines capable of making 7-nanometer chips – "just around the corner".

SMIC has wafer fabrication sites throughout mainland China, plus offices in the United States, Italy, Japan, and Taiwan, and a representative office in Hong Kong. It is headquartered in Shanghai and incorporated in the Cayman Islands.

This is what happen when you mess with your costumers.
This is what happen when you have Neocons that do not know on what they are legislating and don't follow any rational advise that contradicts their ideological garbage.
 
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Sadly i think Huawei should have done this years ago, they should have helped SMICs to advance their nodes and help to increase the localization of EDA tools and Semiconductor Manufacturing tools inside China. But i guess was easier to go with TSMC and buy foreign EDA, is not a bad idea when all you want is to sell products but all the signals of crippling ban where there even under Obama when some Hawks where thinking in introducing sanctions to ZTE but the Obama Administration rally against it because they dont wanted the Chinese to develop their own semiconductor industry .
 
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Its not just Huawei dumping their dependency on TSMC. ASML is now pressured dump unreliable American IP from future designs. If they have two nearly equal options they wont pick the American one anymore and go for the bigger ROI.
 
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Huawei inks deal in Shanghai to create its own microchips
Tech giant will cooperate with China-based chipmaker SMIC and Shanghai Microelectronics to 'break the US monopoly' of foreign semiconductor fabs
by Chris Gill

(ATF) The US has worked aggressively to halt the global supply of microchips to Chinese tech firm Huawei. As the company was originally formed from part of the PLA – the People's Liberation Army – during China's drive to modernise in recent decades, Huawei has always been regarded as a semi-autonomous firm, with a strong allegiance to the Chinese Communist Party.
Within this context, Huawei HiSilicon has proposed that its Kirin series chips, that have been developed over a number of years, go into production. Huawei CEO Ren Zhengfei expressed gratitude to the United States for giving the company a real opportunity to develop this product.

It is estimated that Huawei has a big stockpile of chip which will tide it over while it develops its own. In addition, Huawei had intended to achieve a win-win cooperation deal with TSMC, a Taiwan-based chipmaker, but the USA put the kybosh on that.

So, Huawei had to come up with a strategy to cooperate with China-based chipmaker SMIC. However, SMIC lacks capacity and the scale of technology to meet Huawei’s needs.

But now Shanghai Microelectronics has announced it will step into the breach and manufacture the technology that SMIC is missing. If the company can achieve its aim, it will "break the monopoly" of foreign semiconductor fabs.

Throughout the confrontation between Huawei and the United States, the firm has more or less conducted business as usual.

Approval for UK R&D facility
A deal has been signed to build a more than £1-billion research facility in Cambridge Silicon Fen in England. Recently, the South Cambridgeshire District Council in the United Kingdom held a remote planning meeting and approved the construction plan for Huawei's R&D centre, which will become the global headquarters of Huawei's opto-electronic business.

And the UK government has finally given the nod to allow Huawei to participate in Britain's 5G network.

Huawei also has plans for a PC chip design to rival Apple, AMD and Intel.

Today, Huawei mainly depends on the chip supply from SMIC, but the shortage of high-end machines is a major problem for the tech giant. Dutch ASML companies are subject to interference via the shares of American companies and are unable to provide advanced products to China.

As of now, the Shanghai Microelectronics has launched its first domestic machine, using ARF technology, which it says can fully meet the current needs of SMIC.

According to experts, the advanced machinery launched by Shanghai Microelectronics can accurately produce 11-nanometer chips, although the current large demand for Huawei is mainly supplying 14-nanometer chips.

And, based on this new breakthrough, Shanghai Microelectronics is also advancing to a 7-nanometer chip process. After one more step, the company says it will have machines capable of making 7-nanometer chips – "just around the corner".

SMIC has wafer fabrication sites throughout mainland China, plus offices in the United States, Italy, Japan, and Taiwan, and a representative office in Hong Kong. It is headquartered in Shanghai and incorporated in the Cayman Islands.

This is what happen when you mess with your costumers.
This is what happen when you have Neocons that do not know on what they are legislating and don't follow any rational advise that contradicts their ideological garbage.
It reminds me od that old adage:Where there is a will there is a way.......and if you have the political will then you`re already half way there,the rest is merely resources and hard work.
I think we may very well be looking at the beginning of the end of the us monopoly on semiconductors.
Sadly this may well turn put to be yet another example of the lesson that the west has failed to learn time and time again over the last hundred years.....the lesson of unintended consequences.
 
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It will take years and decades but it will be done.
I will not be surprise if they developed it sooner than most people think because There is a lot of activity that probably is happening under the radar that most people dont know. Many people are describing it as "Manhattan type projects".
Different from the past when the government just throw money and see how much will stick and R&D from universities never saw commercial applications. This time is a more comprehensive approach private sector, the government, the local governments, the VCs and universities working in synchronization in different projects. so it could be more successful.
 
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It reminds me od that old adage:Where there is a will there is a way.......and if you have the political will then you`re already half way there,the rest is merely resources and hard work.
I think we may very well be looking at the beginning of the end of the us monopoly on semiconductors.
Sadly this may well turn put to be yet another example of the lesson that the west has failed to learn time and time again over the last hundred years.....the lesson of unintended consequences.
Are you in North Korea?
So cool·!
 
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