Western chipmakers worry Huawei ban will only empower China tech
Ed.’s note: Huawei is currently struggling with what has been called “an existential threat to its business” after the US Commerce Department blocked the company from contracting with US companies without government approval. The ban has already forced companies like Google to suspend work with the Chinese tech giant Huawei. U.S. Commerce Secretary Wilbur Ross made it nearly impossible for U.S. companies to sell critical technology to Huawei by requiring them to obtain government licenses that operate under an explicit “presumption of denial” policy. Did anyone notice China was allowed into the World Trade Organization (WTO) just after September 11, 2001? Prior to 9/11 the Chinese were not interested in joining the WTO.
If Beijing policymakers believe Trump is either misinformed or bluffing, then what has to be really looked at hard is how Israel will benefit from this trade war between the US and China. And furthermore, if there is a ban on Huawei compromising American chip maker profits, how will Israel chip makers benefit? If Israeli spies are “flooding Facebook and Twitter”, where else are Israeli spies “flooding?” Inside Boeing? Lockheed Martin?
Even though the US has warned Israel about a “Chinese threat,” notice that as Huawei is increasingly targeted in the US, the Chinese tech giant is moving more into Israel. This while New York Governor Cuomo seeks Israel’s “help” for New York City’s subway. New York City can’t find an American contractor to repair New York City’s subway system? America, when are you going to get pissed off? And just to make sure everyone is in agreement on Israel, the last paragraph in the article mentions that yes, “antisemitism is up” in New York.
All the tech giant chip makers like Apple to Amazon, Intel, IBM, Broadcom and Qualcomm all depend on Israel to expand their chip-design abilities. So this means that if chip manufacturing continues to decrease in the US, Israel is positioning itself to manufacture an increase in chip production including most of all Intel. Qualcomm’s facilities in Israel include two research and development centers, one located at Haifa and the other at Hod Hasharon. Both locations are affiliated with Qualcomm Technologies, Inc. Qualcomm’s largest division sells millions of chips per year.
The Qualcomm R&D center in Israel was established in 1993 and has since provided significant contributions to Qualcomm’s products, technologies and innovation. Between 2010-2016, Qualcomm acquired five Israeli companies, and continues to expand in leading technologies. The Nikkei Review article published below only covers the US-based chip manufacturing and not Israel chip manufacturing where there are more than 150 chip design facilities. Global semiconductor makers are now in an all out race to produce powerful chips to support new technologies like fifth-generation (5G) mobile networks, connected cars and artificial intelligence (AI).
Source Nikkei Asian Review
Qualcomm, AMD and Arm fear $200bn market swaying to homegrown rivals
by Kensaku Ihara and Hiromi Sato, Nikkei staff writers | June 26, 2019
TAIPEI/PALO ALTO, U.S. — American and European semiconductor companies are shunning China’s Huawei Technologies to abide by Washington’s blacklist, but they worry that the resulting supply gap will only propel Chinese technologies to advance and eventually dominate their massive home market.
Such sentiment was on vivid display at a recent information technology show in the Taiwanese capital. “All business leaders would like [global trade issues] to be resolved as soon as possible,” Advanced Micro Devices CEO Lisa Su told reporters at the Computex Taipei, one of Asia’s largest tech events.
Su did not sound happy about having been forced to stop supplying the Chinese company. “Huawei is a customer of ours. They’ve done some very nice PCs,” she said.
Executives from Qualcomm and Arm Holdings also stressed their desire to resume dealings with Huawei at the event.
“The hard-line approach by the U.S. has thrown their strategy for taming China off course,” said an industry source in Taiwan.
Looking to take on China’s $200 billion semiconductor market — roughly half the global total — the three companies each formed a joint venture there with local partners between 2016 and 2018. Tougher rules on dealing with Huawei and other key Chinese clients would deal a blow to their ambitions.
Chinese authorities shut out Google and other foreign internet platforms, allowing homegrown alternatives like Tencent Holdings to dominate the Chinese market. The country still relies on overseas players for semiconductors, but some think the same thing could happen in that sector as well.
For example, U.S.-based Synopsys, one of the market leaders in electronic design automation, has suspended transactions with Huawei. “A disruption in supply could encourage Chinese players to develop alternatives over the medium term,” a Taiwanese chip researcher said.
Please go to Nikei Asian Review to read the entire article.
If Huawei Ditches Android, Google Will Lose 800M User
By Deidre Richardson | June 26, 2019
“Huawei and Google will always be on the same line of interest, and if we don’t load Google’s system, Google will lose 700-800 million users in the future,” Zhengfei said.
The quoted number of potentially departing Android users is a curious one, considering that there’s little knowledge regarding how many Android users are currently using Huawei devices. Perhaps Huawei’s CEO knows this because of mobile analytics information, in the same way Google knows it has over 2 billion users on its mobile OS.
Outside of this, however, the number seems pulled out of thin air. There is something worthy about it, when one considers that Huawei is the second largest global manufacturer in the world and that many of its devices run Android (though some of its devices run Windows). So, perhaps the number is likely, probable, or even reasonable to imagine.
And yet, at the same time, there are a few factors worth considering. First, there’s the idea that Huawei is telling Google about its users and how many it will lose, but Google’s not at fault for the Trump Ban: President Donald Trump is. Trump is the one who has told American companies, of which Google is one, that it must not do business with Huawei without government approval.
Please go to AH to read the entire article.
America, are you listening?