Huawei Equipment Ban: Asia Times

Huawei Technologies held a strong lead in the world’s 5G mobile broadband race, but the Trump administration is keen to slow that rollout. The US president, in an unprecedented move, tries to block sales to Huawei of any products made with US equipment, reports David Goldman for Asia Times. The move could block Huawei’s access to needed equipment and chips. “The ban may apply not only to the high-end chips that Huawei buys from Taiwanese fabricators for its high-end smartphones and servers, but also to radio frequency devices that power its 5G base stations,” he writes. “That might hold back China’s $170 billion internal rollout of 5G and hamper Huawei’s network building elsewhere, according to industry experts.” Complex supply chains for design and manufacturing combine technology from thousands of firms from many nations, and many companies may rework chains to avoid US equipment. China could retaliate by blocking US tech companies from its market, racing to develop its own supply of components. China purchases about 60 percent of the world’s chip supply, and Huawei will struggle to fulfill contracts. The US, focusing on regulations rather than innovation, could lose its position as leader in semiconductor technology. – YaleGlobal

Huawei Equipment Ban: Asia Times

US president issues extraterritorial ban on chip sales or use of US-made equipment, disrupting rollout of 5G mobile broadband by China's Huawei
David Goldman
Tuesday, May 19, 2020

Read the article from Asia Times about the US blocking sales of tech equipment to China's Huawei.

Percent of Sales to China Before Trade War, Selected US Firms: Cisco Systems	16% Applied Materials	19% Apple	20% Western Digital	22% Intel	24% Micron Technology	51% Broadcom	54% Qualcomm	65% Skyworks Solutions	83%
Backfire? The Trump administration launched its trade war against China in 2018, and companies around the world may seek substitute components (Source: MarketWatch)

© 2020 ASIA TIMES.

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