US-China trade war Archives - Gizmochina

US halts tariff hikes—except for China, which now faces 145%

Debasish — Thu, 10 Apr 2025 07:34:37 +0000

UPDATE: Trump administration clarified yesterday that total tariff on China is now at 145%. This figure builds on a 20% duty introduced earlier this year, which was imposed in response to China’s alleged involvement in the fentanyl supply chain.

Apple recently shifted a large number of iPhones and other products from its inventory in India and China to the US. It was intended to keep the retail prices the same for as long as possible under the new tariff imposed on all imports to the US.

Now, the Trump administration has halted the tariff hikes for 90 days for all countries that had not retaliated against US tariffs. So, the countries will only face a blanket US tariff of 10% until July. When asked for the reason behind the pause, the US president responded: “People were jumping a little bit out of line. They were getting yippy.”

Beijing raised tariffs on US goods to 84%

But, as mentioned in the title, this isn’t the case for China. The Trump administration has increased the already staggering 104% tariff to an even higher number—125%—and it is being referred to as the initiation of a new trade war between the two countries.

But the reason? As a response to the previously imposed 104% tariff on exports from China, the country slapped 84% tariffs on imports from the US. In response to this, the Trump administration accused Beijing of a “lack of respect” and increased the tariff to 125%, which became effective immediately.

Over 75 countries requested the US federal government “to negotiate a solution” since the Trump administration introduced its plans for the tariff hikes, revealed the US President. Finally, he made his mind to back down, setting the stage for three months of negotiations with several countries.

Most of you are possibly aware of the impact of this tariff change on the stock market. On Wall Street, the benchmark S&P 500 rallied by 9.5%, which is its biggest single-day increase since 2008. The Nasdaq Composite climbed 12.2% – its best day since 2001.

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Huawei Outsmarts US Chip Ban? Report Claims Breakthrough Chip Made with US Technology

Anubhav — Sat, 09 Mar 2024 03:08:20 +0000

Despite US restrictions on supplying advanced chip technology to China, Huawei managed to develop a more powerful chip for its Mate 60 Pro smartphone using technology from US companies.

An earlier report mentioned SMIC using ASML’s tech in the past

Reports from Bloomberg indicate Huawei, along with its chip manufacturing partner SMIC, utilized technology from California-based Applied Materials and Lam Research to create a 7-nanometer chip. While not the most cutting-edge chip available, it surpasses what the US intended for its competitor in the ongoing chip war. This news comes after a previous Bloomberg report in October 2023 mentioned SMIC using technology from Dutch company ASML for another advanced Huawei chip.

Crucially, SMIC reportedly acquired the US technology before the US Department of Commerce implemented a ban in October 2022. This ban restricted US companies from supplying advanced chipmaking equipment and chips to Chinese firms. Further US restrictions in November 2022 prohibited the approval of equipment sales to Huawei and other Chinese companies, citing national security concerns.

While the US Commerce Department hasn’t found evidence of SMIC mass-producing these advanced chips, Huawei enjoyed strong initial demand for its Mate 60 series in the first six weeks of 2024. During this same period, Apple‘s iPhone sales in China dropped a significant 24% year-over-year, though overall smartphone sales in China fell by 7%.

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Nvidia’s CEO, Jensen Huang Strategically Returns to China Amidst Tech Tensions

Anubhav — Mon, 22 Jan 2024 05:19:15 +0000

Jensen Huang, the CEO of Nvidia, recently marked his return to China after a four-year hiatus. His visit signals a pivotal moment for the U.S. chip behemoth, grappling with the complexities of the Chinese market and escalating U.S.-China tech tensions.

The company’s chief wants to navigate the US-China tech tensions

Huang’s tour, encompassing Beijing, Shanghai, and Shenzhen, wasn’t just a routine check-in. It was a calculated move amidst the challenging landscape shaped by stringent U.S. export regulations. Donning a floral-patterned vest, he embraced local culture with a spirited Yangge folk dance, symbolizing more than just a corporate visit—it was a gesture of unity and resilience.

This trip, described by an Nvidia spokesperson as a New Year celebration with employees, comes at a critical juncture. Nvidia, a key player in the global tech arena, faces significant revenue drops in China due to new U.S. rules curbing exports of specific graphics processing units (GPUs) designed for Chinese clients. These GPUs are crucial for industries like AI, automotive, gaming, and healthcare, sectors where Nvidia has deep roots.

In the backdrop of these challenges, Huang’s visit carries substantial weight. It’s a balancing act of maintaining business relations in China while navigating the tightrope of U.S. regulations. Last November, Nvidia anticipated a sharp decline in sales to China, which previously contributed significantly to its data-center revenues.

The company isn’t just sitting back, though. They’re actively developing new, regulation-compliant products for the Chinese market. This process, as Huang admits, is intricate and time-consuming but essential for Nvidia’s sustained presence in China. His statement at The New York Times’ DealBook conference in New York echoed a commitment to both national security and global competitiveness.

Huang’s engagement with the U.S. government to create compliant products is a testament to Nvidia’s adaptability and strategic foresight. U.S. Commerce Secretary Gina Raimondo’s recent remarks highlight a nuanced approach: while Nvidia can sell AI chips in China, they must withhold their most advanced semiconductors.

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Nvidia’s RTX 4090 Vanishes from Chinese Website

Anubhav — Tue, 21 Nov 2023 02:50:16 +0000

As covered here, the Chinese tech market was scrambling as the news of the ban on RTX 4090 cards spread like wildfire. Now, Nvidia has completely taken the card off it’s website, it seems. This action raises questions about the availability and future supply of this sought-after gaming card in China.

This rumour was lingering in the tech space very recently, but it happened sooner than expected

The RTX 4090, known for its top-of-the-line graphics processing capabilities, is part of Nvidia’s GeForce RTX 40 series. Its sudden disappearance from the official websites has caused unease among Chinese gamers and tech enthusiasts. This move comes amidst tight supply in China, attributed to the card’s high performance in graphics applications.

The situation is compounded by recent U.S. export controls, which impose stricter regulations on the export of advanced graphics chips to China. This has led to speculation that the RTX 4090 might face withdrawal due to these new rules. Adding to the concerns, several of Nvidia’s major hardware partners in China have also removed the RTX 4090 from their online stores.

Despite these challenges, the RTX 4090 remains available through e-commerce platforms and unofficial channels, albeit at inflated prices. This availability hints at a resilient demand for the product, despite regulatory hurdles.

Interestingly, the RTX 4090’s significance extends beyond gaming in China. It plays a crucial role in supporting advanced applications like autonomous driving, highlighting its importance in various technology sectors. However, the main concern in China still revolves around Nvidia’s data center chips, which are facing surging prices and supply issues.

In response to these challenges, Nvidia is adapting by developing new data center GPUs specifically for the Chinese market. The first shipment of these new GPUs is expected by the end of the year.

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US Legislators Propose Clarity Act to Block Chinese Blockchain Networks

Anubhav — Thu, 09 Nov 2023 15:06:00 +0000

Amidst developing China-US tensions, US legislators have proposed a bill to prevent federal agencies from using Chinese blockchain networks. This bill, named the Clarity Act, aims to sever ties with certain Chinese firms, reflecting a broader strategy to maintain the US’s digital control, especially in the Web3 space.

This move comes when US and China are already dealing with data security concerns

The proposed legislation takes direct aim at the Blockchain-based Service Network (BSN) and Conflux Network, amongst others, due to concerns over national security and data privacy. BSN, in particular, has been a cornerstone of China’s blockchain strategy, funded by state-owned entities and designed to advance blockchain use without cryptocurrencies. While BSN attempts to globalize with its Spartan Network, US officials remain wary.

The bill’s introduction reflects a larger narrative of the US seeking to protect its interests in the digital era. While the Clarity Act targets blockchain, it’s part of a bigger picture where the US scrutinizes Chinese technology on all fronts, from TikTok to 5G. The bill also calls for an assessment of risks, including those posed by alternatives to the SWIFT banking network and China’s Belt and Road Initiative.

This legislative move signals a precautionary stance, ensuring sensitive American data doesn’t fall into foreign hands. However, the bill’s success is uncertain, lacking support from key committee leaders. Yet, its very existence confirms a bipartisan understanding that the US must guard its technological frontiers against rivals, especially China. This stance echoes the sentiments of US Senate Majority Leader Chuck Schumer, who advocates for a competitive yet non-confrontational stance towards China.

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Global Chip Titans like Micron, Samsung Navigate Tensions and Tech at Shanghai’s CIIE

Anubhav — Wed, 08 Nov 2023 01:53:46 +0000

The landscape of the global semiconductor industry is seeing a mix of competition and cooperation, as illustrated by the recent China International Import Expo (CIIE) in Shanghai. Amid a backdrop of heightened chip rivalry and trade tensions, particularly between the U.S. and China, this expo has become a hotspot for demonstrating commitment and technological prowess.

China’s government is pushing hard for chip self-sufficiency

At the CIIE, heavyweights like Micron, ASML, and Samsung have marked their territory, showcasing their latest advancements and securing their foothold in the Chinese market. These displays come at a time when the Chinese government is pushing hard for chip self-sufficiency, a move prompted by international trade challenges.

Interestingly, while some like Micron and Samsung are making bold appearances despite facing sales bans and restrictions, others like Nvidia have opted out, maintaining a conspicuous absence. This reflects a strategic dance where companies must balance their global market aspirations with the regulatory tightrope of international trade policies.

Micron’s presence, in particular, signals a possible thawing of tensions with Beijing, as the company deployed a significant team to the expo despite past security review setbacks. This points to the intricate relationship businesses have with politics, where economic interests often lead to softened stances and renewed dialogue.

ASML and Samsung also used the expo to assert their influence and technological edge. Samsung’s introduction of its advanced 3-nanometre chip technology contrasts with its China-based plants’ focus on more mature-node chips, highlighting the complex interplay between innovation and production strategies.

AMD‘s focus on AI solutions and its declaration of AI as a strategic priority showcases the industry’s pivot towards future technologies. However, the absence of companies like Nvidia underlines the reality that the tech industry’s future is not just about innovation but also about navigating the geopolitical chessboard.

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TSMC Founder Expresses Concerns Regarding US-China Chip Tensions

Anubhav — Fri, 27 Oct 2023 00:57:39 +0000

Morris Chang, the 91-year-old retired founder of the Taiwan Semiconductor Manufacturing Company (TSMC), voiced a deep concern that’s probably shared by many in the tech industry: the possible decoupling of the United States and China, the world’s two largest economies. In an event at the Asia Society in New York, he warned that such a separation would “slow down everybody,” reflecting on the complex web of global supply chains that both countries are part of.

TSMC, which is worth over $400 billion, is suffering from this US-China Chip War

While Chang touched on concerns of an emerging superpower challenging an existing one, as described in Graham Allison’s book “Destined for War,” there’s more to the narrative. The tech industry is at the epicenter of this geopolitical earthquake, where the tremors could be felt across the globe, affecting companies like TSMC, which is worth over $400 billion and supplies key components to tech giants like Apple.

The U.S. has taken steps to shift semiconductor production stateside with measures like “onshoring” and “friendshoring,” incentivized by federal subsidies. These moves are aimed at making the U.S. less dependent on Taiwan, a self-governed island that China views as a part of its territory. It’s a security-driven move aimed at securing supply chains and reducing dependency on regions that could become hotspots due to their geopolitical standing.

However, there’s a flip side to this strategy. The U.S.’s push for independence in semiconductor production might undermine the very global ecosystem that has been responsible for technological innovations. It also risks making things more expensive and less efficient for everyone involved. Chang’s TSMC, for instance, has already faced hurdles in its Arizona plant, including a shortage of skilled labor and disputes with local unions.

Moreover, China’s demographics give it an edge as a future tech leader, as pointed out by Joe Tsai, co-founder of Alibaba Group. With 800 million people in the labor force, 200 million of whom are highly skilled, the U.S. and its allies might find themselves playing catch-up in the long run.

In a world that’s becoming increasingly “dangerous and unpredictable,” according to Tsai, the U.S.-China decoupling seems like a double-edged sword: a move toward security could be a step back for global progress. And both countries need to come to a consensus soon to put everyone’s worries to rest.

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AMD’s Job Cuts in China: Navigating the US-China Tech War

Anubhav — Fri, 27 Oct 2023 00:54:08 +0000

Advanced Micro Devices (AMD), a major player in the graphics processing unit (GPU) market, has been tweaking its business operations in China. While the company has refuted online rumors about slashing hundreds of jobs in its Shanghai office, it did confirm a “small optimization and restructuring” in a recent statement. But what does this really mean, especially in a market as significant yet challenging as China which is already struggling in the Chip sector?

China accounted for 22% of the total AMD external sales last year

China has been a lucrative market for AMD, accounting for 22% of its total sales to external customers in 2022. However, a U.S. export ban has impacted AMD and its main rival, Nvidia, limiting their abilities to sell advanced AI-training GPUs in the country. As a result, a robust black market has emerged, filling the gap and serving China’s tech giants who are on the hunt for top-tier AI chips.

Despite these hurdles, AMD’s CEO Lisa Su remains optimistic about the potential in China. She recently stressed the company’s commitment to be “fully compliant with U.S. export controls” while expressing a strong desire to offer AI solutions tailored for the Chinese market.

Although AMD hasn’t given details about its recent “restructuring” in China, it’s critical to remember that in the local context, the term often refers to job cuts. Under Chinese law, a layoff involving more than 20 employees calls for official labor authority intervention. AMD, like other U.S. tech companies Qualcomm and Marvell Technology, seems to be reducing its workforce in China as part of an industry-wide reaction to the U.S.-China tech war and global consumer electronics demand fluctuations.

Everyone is probably confused if AMD is retreating or simply adapting? It appears the company is taking calculated steps to navigate through complex geopolitical and market conditions. By optimizing its operations, AMD seems to be positioning itself to capture what it sees as long-term opportunities in China, without alienating itself from existing U.S. policies. With its strong revenue stream from the country, AMD is unlikely to completely withdraw, but a shift in strategy is clearly happening.

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Chen Nanxiang Charts a Path for China’s Semiconductor Future Amid US Restrictions

Anubhav — Wed, 25 Oct 2023 14:07:25 +0000

Recent shifts in the global semiconductor landscape have placed China in a rather precarious position. The election of Chen Nanxiang, chairman of Yangtze Memory Technologies Corp (YMTC), as the new head of the China Semiconductor Industry Association (CSIA) comes at a crucial time when US sanctions have further tightened their grip on the industry.

Chen seems to be directing the CSIA into a more proactive role

Chen, who was elected in Wuhan where YMTC is based, laid out a plan that focuses on unity and consensus within the industry. His leadership couldn’t be timelier. The US just expanded export restrictions, including a ban on certain less advanced deep ultraviolet (DUV) immersion lithography systems. These new rules have not only complicated YMTC’s plans for capacity expansion but also raised questions among Dutch lawmakers about the US‘s unilateral actions.

Chen seems to be directing the CSIA into a more proactive role, advocating for a better decision-making process and a stronger execution team. “It must build industry consensus and become a value contributor to the development of China’s semiconductor industry,” he emphasized. This suggests a more cohesive strategy to navigate the complex geopolitical climate and technological challenges the industry faces.

Also noteworthy was the attendance of Qiao Yueshan from the Ministry of Industry and Information Technology at the election. Yueshan’s presence could signify that the government is keen on having a more vocal and unified industry front.

Although YMTC recently got hit with a spot on the US trade blacklist, this new leadership role for Chen could mean more emphasis on domestic partnerships. The company had already been working closely with domestic suppliers like Naura Technology Group, a pattern we might see more frequently as the trade sanctions continue to pinch the country.

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U.S. Regulation on RISC-V Chip Technology Could Halt Global Innovation

Anubhav — Tue, 10 Oct 2023 01:03:58 +0000

As tensions escalate in the U.S.-China tech war, lawmakers are pushing the Biden administration to limit American companies’ involvement in RISC-V, an open-source chip technology. While cited as a national security move, experts warn that such actions could stymie technological advancement on a global scale.

RISC-V has the potential to bring down the cost of everything related to technology

RISC-V, which stands for “Reduced Instruction Set Computing-5,” competes with the proprietary chip technology from British firm Arm Holdings. It’s open-source nature means it could significantly cut down costs for everything from mobile phones to AI processors. However, lawmakers argue that this could be a backdoor for China to exploit U.S. intellectual property and catch up in the semiconductor race.

The regulation of RISC-V may sound like a smart strategic move at first glance, especially with the ongoing tech warfare between the U.S. and China. However, the open-source chip technology could, ironically, be a double-edged sword for the U.S. itself. While lawmakers like Senator Marco Rubio and Mark Warner are concerned that China could use RISC-V to bypass U.S. technological dominance, critics argue that putting restrictions on this technology would curtail global collaboration on chip innovation.

Jack Kang, a tech executive at California-based startup SiFive, likens the potential regulation of RISC-V to “banning us from working on the internet.” With the U.S. itself benefiting from this open-source technology—Google plans to make its Android system compatible with RISC-V, and Qualcomm is collaborating with European firms on RISC-V chips—the move could prove counterproductive.

Moreover, the possible restrictions would contradict the ethos of the open-source community, which thrives on collective input for rapid innovation. The impact would be far-reaching, affecting not just the U.S. and China, but also European efforts to create more efficient and economical chip technologies.

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Chinese giant Huawei unlikely to be removed from US’ list of restricted companies

Jeet — Mon, 14 Jun 2021 06:17:43 +0000

The US-China trade war saw Huawei getting banned in the United States in 2019 and the Chinese giant has been on the Entity List of the US government ever since, making it very difficult for the firm to continue doing its hardware business.

Huawei, along with its 70 subsidiaries, has been banned from doing business with companies based in the United States or using technologies developed in the US. The list also includes some other China-based companies.

Amid this trade war, China is gearing up to become self-sufficient in several technological sectors, including making semiconductors. It is also working on several next-generation technologies such as AI, ML, 6G, and more.

The United States is also working on being a frontrunner in the technology sector and is set to spend around $54.2 billion to increase the competence of American firms. The bill, named US Innovation and Competition Act, is currently in the House of Representatives.

When Huawei was put on the Entity List, the company was accused by US officials of being a national security risk for its alleged ties with China’s military and security agencies. However, the company has repeatedly denied such claims, for which the US government has provided no proof so far.

Because of the ban in the United States, Huawei can no longer make its own semiconductor, and companies doing business with the Chinese giant need to take a special license or permission from the US government, which is unlikely to come by.

With difficulties in the consumer electronics business, Huawei has now shifted its focus to other businesses, including software development and electric vehicles. Both these fields aren’t the core part of Huawei and it will be interesting to see if the Chinese company manages to establish itself in such sectors.

Huawei’s first-quarter revenue fell by 16.5 percent to 152.2 billion yuan, from 182.2 billion yuan ($28.1 billion) in the same period last year mainly due to a shrinking consumer business, the company’s main revenue earner.

United States places investment ban on several major Chinese companies like Huawei and SMIC

Jeet — Fri, 04 Jun 2021 04:13:07 +0000

It seems that the trade war between China and the United States isn’t slowing down. In a new development, US President Joe Biden has signed an executive order that bans companies based in the United States from investing in Chinese companies.

The list includes dozens of Chinese companies with alleged ties to the defense or surveillance technology sectors. This new order basically expands the scope of the legally flawed move by the Trump administrator.

Source: Wikimedia

The US Treasury Department will enforce and update a list of companies on “rolling basis” which currently includes about 59 companies. The orders bars buying or selling publicly traded securities in target companies. It also prevents U.S. investment from supporting the Chinese military-industrial complex, as well as military, intelligence, and security research and development programs.

Treasury Department would give guidance later on what the scope of surveillance technology means, including whether companies are facilitating “repression or serious human rights abuses.”

Major Chinese firms included on the previous Defense Department list were also placed on the updated list, including Aviation Industry Corp of China (AVIC), China Mobile Communications Group, China National Offshore Oil Corp (CNOOC), Hangzhou Hikvision Digital Technology Co Ltd, Huawei Technologies Ltd, and Semiconductor Manufacturing International Corp (SMIC).

The move is being viewed as a part of Biden’s broader series of steps to counter China, including reinforcing U.S. alliances and pursuing large domestic investments to bolster American economic competitiveness.

Xiaomi and US Department of Defense issues Joint Status Report for lawsuit settlement

Jeet — Wed, 12 May 2021 05:59:19 +0000

Xiaomi Group and the US Department of Defence have issued a Joint Status Report related to the lawsuit filed by the Chinese company. In the documents, the US government has acknowledged procedural justice issues on the military list and is willing to settle the matter with the Xiaomi Group and remove the company from the military blacklist.

For those who are unaware, in January this year, the United States government had included nine Chinese companies, including Xiaomi, on the military blacklist citing close ties to the Chinese military, to prevent American investors to invest in those companies.

Soon after that, Xiaomi filed a lawsuit against the US government and District Judge Rudolph Contreras put a temporary halt to the ban, siding with Xiaomi in a lawsuit that argued that the move was “arbitrary and capricious” and deprived the company of its due process rights. The judge blocked the Defense Department from restricting U.S. investment in the Chinese smartphone manufacturer Xiaomi Corp.

After the ban was announced, the company faced the prospect of being delisted from U.S. exchanges and deleted from global benchmark indexes. However, Xiaomi was likely to win a full reversal of the ban.

Xiaomi is the third-largest smartphone manufacturer in the world by shipments, just behind Samsung and Apple. The initial announcement of the ban on Xiaomi knocked $10 billion off its market share and sent the company’s shares down 9.5 percent in January.

Tencent reportedly in talks with the United States to keep gaming investments

Jeet — Thu, 06 May 2021 05:45:59 +0000

Tencent Holdings, one of the Chinese giants, is negotiating agreements with the United States national security panel as it eyes permission to keep its ownership stakes in the US-based gaming companies like Riot Games and Epic Games, reports Reuters citing people familiar with the matter.

The report adds that Tencent has been in talks with the Committee on Foreign Investment in the United States (CFIUS) since last year. The committee has the authority to order the Chinese technology giant to divest its holdings in the U.S.

On the other hand, the report adds that CFIUS has been looking into whether Epic Games‘ and Riot Games’ handling of the personal data of their users constitutes a national security risk because of their Chinese ownership.

For those who are unaware, Tencent holds around 40 percent stake in Epic Games which is a maker of the popular game Fortnite. The Chinese giant had bought a majority stake in Riot Games in 2011 and acquired the remaining stake in 2015. Riot Games is the developer of League of Legends.

A Riot Games spokesman said to Reuters that the company operates independently of Tencent and that it has implemented “industry-leading practices” to protect player data.

Committee on Foreign Investment in the United States (CFIUS) has been cracking down on Chinese ownership of U.S. technology assets in the last few years amid an escalation in tensions between both the countries over trade, human rights, and the protection of intellectual property. The United States is concerned about the data of its citizens could end up in the hands of China’s Communist Party government.

Global chip shortage to last well into 2022 as industry struggles with multiple obstacles

Sean — Wed, 21 Apr 2021 07:42:33 +0000

The world is currently suffering from a major shortage of semiconductors at the moment. This has impacted various industries across the globe with the industry struggling due to various complex obstacles, which would likely cause the shortage to further last into 2022.

According to an SCMP report, the chip shortage is worsened by the multiple factors that are at play right now. The report further added that this would likely lead the shortage to last through this year and well into 2022 as well. For those unaware, the shortage first affected the automotive industry since the chips controlled various functions like brakes, doors, and windscreen wipers, and more. And now, the issue is also affecting consumer electronic products like smartphones, PC market, and even home appliances like washing machines and microwaves as well.

Furthermore, two of the major hurdles the situation faces at the moment includes the coronavirus pandemic as well as the ongoing US-China trade disputes that has affected supply chains. While the price rise of chips is a result of the shortage that is related mostly to the semiconductor sector for now, analysts believe that some low margin consumer products might soon also see a hike in price in the near future due to persisting capacity crunch.

Notably, many analysts also believe that the the first step on the path to a chip shortage was actually due to the escalation of the United States’ growing friction with China. This started with the previous President Donald Trump, with the current President Joe Biden also attempting to bring semiconductor production within the US. So, it would seem like that it will take a while before the situation becomes normal again.

TSMC to suspend chip orders to Chinese supercomputing firms over US Sanctions

Sean — Fri, 16 Apr 2021 07:35:38 +0000

The US recently added new entities into its trade blacklist, which were from Chinese origin. Now, the impact of these sanctions are already showing effects as TSMC (Taiwan Semiconductor Manufacturing Company ) has suspended new chip orders from one of the newly blacklisted firms.

According to a SCMP report, the world’s largest contract chip maker has stopped taking orders from Phytium Information Technology Co, which is one of the seven Chinese supercomputing related firms that were added to the US Entity List last week. As per a source close to the matter, the company will complete any existing orders that were placed before the Chinese firms were added to the blacklist over national security allegations.

Furthermore, a TSMC representative decline to comment on the matter but did state that the company would “abide by all the laws and regulations as always, and will operate according to the export restrictions.” Meanwhile, Phytium has yet to offer any statement regarding this matter. At the moment, while China is investing heavily in the development of its local semiconductor technology, it is still reliant on foreign technology and chips from overseas.

The nation’s supercomputers use processors made by tech giants like Intel, AMD, and IBM. According to Francis Lau, a computer science professor at the University of Hong Kong, “The sanctions would definitely affect China’s ability to keep to its leading position in supercomputing because all current supercomputers use mostly US-built components. Although there are alternatives made by other countries such as Japan and [South] Korea, the best components are still by the US.”

ASML CEO says that attempting to restrict chip shipments to China will fail

Sean — Thu, 15 Apr 2021 11:27:40 +0000

ASML CEO believes that the attempt to control the export of chips to China will not work. The executive said that this would not only fail to hinder the region’s technological progress but also end up hurting the US economy as well.

According to a Bloomberg report, Peter Wennink, the CEO of ASML Holding believes that trying to control chip export to the region will be detrimental to the US. This move arrives amid growing trade tensions between the US and China, which had also led to restrictions on the sale of the Dutch company’s advanced equipment to Chinese firms. The senior official said that “I believe that export controls are not the right way to manage your economic risks if you have determined that there is an economic risk,” during an online event.

The executive further argued that “you close China from access to technology, that will also cost non-Chinese economies a lot of jobs and a lot of income.” Wennink believes that while it may take China a while to build its own semiconductor equipment and technology due to lack of access to foreign technology, non China based firms will be barred from one of the world’s largest chip markets.

In other words, this would harm even US based companies that trade with China. The CEO also stated that ending ties with China completely could probably cost anywhere between 80 billion to 100 billion US Dollars in sales. Furthermore, it could also affect 125,000 jobs in the US as well, as per estimates from the US Commerce Department.

United States mulls $30 billion funding to boost local chipset manufacturing

Jeet — Fri, 05 Mar 2021 08:08:21 +0000

It has been more than a year since US-China trade war escalated and the one of the most affected sectors is technology-related and the most impacted among the companies is Chinese giant Huawei because of the sanctions imposed by the U.S.

With the escalation in the trade war, many companies are facing production and supply chain issues, forcing those companies to move out from China or diversity their production facilities into more regions.

One of the sector where the United States severely lags behind China is chip manufacturing. However, the U.S. government has been working on new ways to boost the sector and encourage local manufacturing.

In line with that, the U.S. Senate is reportedly considering to include a new bill to boost competitiveness against China for previously-approved measures to supercharge the country’s chipmaking industry.

The $30 billion funding package would include elements to boost the U.S. technology sector and the bill is expected to be up for a full vote in April. However, the legislation has not been finalized and thus, more details are not yet available.

The source of the report, who remains unnamed, says that the package is likely to have provisions to curb China’s access to U.S. capital markets. Last year, a legislature was proposed to provide funding of $100 billion to boost research in key technology areas, from artificial intelligence to quantum computing and semiconductors.

The semiconductor industry has also been pushing for an investment tax credit for spending on semiconductor tools, which can cost billions of dollars for new factories and typically far outstrip the cost of buildings.

Qualcomm’s upcoming CEO says US sanctions on Huawei might lessen stress on Global chip shortages

Balaji S — Fri, 12 Feb 2021 13:38:38 +0000

Early in January, Qualcomm had announced that Cristiano Amon would take over as the CEO of the company from June 30, 2021. Now, Amon has said that US sanctions against Huawei might help lessen the stress on semiconductor shortages.

Cristiano Amon | Image source: Qualcomm

In a webcast with Goldman Sachs analyst Rod Hall(via Bloomberg), he said that because of the hindrance on the chip manufacturing Huawei is facing, facilities at its partner TSMC would become free now. For the unware, TSMC had to halt Huawei’s orders in 2020 because of the tightened restrictions by the US Govt.

The Chinese Giant has henceforth not been able to make more of its HiSilicon Kirin chipsets lately. Anyway, Amon says that Although the facilities would now be available for others, difficulties in transfer of tech might delay the immediate benefits out of this.

Besides, Automakers around the world are facing Semiconductor shortages during the US-China Trade War and clamp down on Chinese tech firms. In fact, its worse in blooming Countries like Germany which has finally sought alternatives like Taiwanese firms.

Also, the demand in chip shortages has further increased the demand on key components Smartphones, Personal Computers, Automation, Networking, etc. This demand is expected to rise prices and persist till the end of H2 2021(Second-Half).

Coming back, Aman says that Qualcomm’s demands have surged than before. In fact, the company’s revenue in Oct.-Dec. 2020(marked as Q1 2021 in Fiscal Year) grew by a whopping 62%.

Qualcomm is eyeing the semiconductor manufacturing plants of TSMC and Samsung that are being planned to set up in the USA. Although it is barred from communicating with Huawei, it is trying its best to get in touch with the recently spun-off brand HONOR.

Finally, Amon said that the semiconductor dispute between US-China would take a long time to settle before reaching a resolution.

United States could add more trade restrictions for technology export to China

Jeet — Thu, 11 Feb 2021 06:46:51 +0000

The Chinese technology companies suffered a lot because of the policies implemented by the former US President Donald Trump. The situation was expected to get a bit better under Joe Biden but it seems that isn’t the case.

As per the latest report, the Biden administration is expected to add “new targeted sanctions” on some sensitive technology exports to China in cooperation with the country’s allies. This comes ahead of the first call of Joe Biden with China’s Xi Jinping.

Apart from adding new trade restrictions for sensitive technologies, it is also being said that the United States government won’t list trade tariffs imposed by the Trump administration before conducting “intense consultation and review” with the allies.

During a briefing session, an official told, “We are maintaining those tariffs while we conduct our review because we’re not going to act precipitously. President Biden’s major criticism of the Trump strategy here was not that he wasn’t getting tough on China on trade, but that he was doing so alone, while also fighting our allies.”

It was also said that Joe Biden is aiming to quickly work with Republicans to boost public investment in technology sectors that are crucial to the United States’ economic edge, including semiconductors, biotechnology, and artificial intelligence.

Honor CEO confirms to be in talks with Google to get GMS support

Jeet — Fri, 29 Jan 2021 05:02:56 +0000

Huawei Technologies, the Chinese giant which was once the leading smartphone brand in the world (in Q2 2020), is now practically out of the smartphone business because of the trade restrictions imposed by the United States.

To ensure that its sub-brand Honor survives, the company sold it off to Zhixin New Information Technology Co. Ltd. After its split, it retained almost all of its employees, which are over 8,000, including some of the company’s executives.

The company is now in talks with several companies to streamline its supply chain and production. Now, Honor CEO George Zhao Ming has confirmed that it is in talks with Google and will soon have Google Mobile Services (GMS) support for its devices.

Given that Honor is no longer a part of Huawei, the company will be able to get access to Google’s software and services. For those who are unaware, Huawei was banned from using Google’s services because of the sanctions imposed by the United and since Honor was a sub-brand of Huawei, it too wasn’t permitted to use Google‘s offerings.

Honor’s CEO has also reiterated what he said when the company was becoming independent — to become a leader in the market. Honor is looking to compete against its former parent company Huawei as well as Apple, as it is eying for the pole position in the Chinese smartphone market.

Apart from Google, the company is also in talks with other companies for the needed components, including Qualcomm for chipsets. It recently launched its own online storage named Honor Mall and is in the process of setting up several new offline stores.

Semiconductor association urges US government to ease export restrictions

Jeet — Wed, 27 Jan 2021 08:47:02 +0000

A semiconductor industry group named Semiconductor Industry Association (SEMI) has urged the United States Department of Commerce to reaccess export restrictions imposed last year aimed at China.

It argues that the restrictive policies were implemented without public participation and adds that it will harm the American companies in the long-term as they will be left behind in global competitiveness.

Ajit Manocha, CEO of SEMI, has asked the Department of Commerce to prioritize reviewing rules that block companies from supplying chipsets made using American technology to Huawei. He has also requested them to quickly process a backlog of requests for trade licenses and adds that the procedure acts as a “de facto denial.”

He has also blasted former President Donald Trump’s administrator for using a “highly unusual process” for implementing “board, ambiguous unilateral controls on semiconductor-related items.” It is asking for a multinational approach for trade policies to ensure a “level playing field.”

In the letter, he also reiterated what many others have said previously — the restrictions imposed by the government harms the American companies and could “stifle innovation in the United States” and it forces them to reduce R&D budgets and shifting production and research activity overseas.

Several major companies are listed as members of SEMI, including Broadcom, Intel, Micron Technology, NXP Semiconductors, and Samsung Electronics.

Refurbished Smartphone market drops 9% Globally in 2020: Counterpoint

Balaji S — Wed, 20 Jan 2021 12:57:37 +0000

As we all know, COVID-19 has impacted every sector from Technology to Agriculture. Hence, the smartphone industry is no exemption to this. For instance, the Global smartphone shipments have declined by 8%. Accordingly, a counterpoint research now says that the Refurbished smartphone market also dropped in 2020.

The refurbished smartphone market is considered a secondary market. Although they are sort of old devices, they are scrutinized for repairs, repacked, and re-sold. Some even include half of the New Smartphone warranty(which is the Primary market). And the report says it considers only such devices for the analysis.

It mentions that the global refurbished smartphone market dropped by 9% YoY in 2020. Among the lot, LATAM(Latin America) and India seems to be the most affected with an individual drop of 24% and 20% respectively. China also faced the heat with an 8% drop in growth compared to 2019.

Reasons like the US-China trade war and tensions with Hong Kong are reportedly the reasons for this. Apparently, many resellers avoid china fearing scrutiny by the Chinese Govt, import duties, higher replacement part costs according to Research Director Jeff Fieldhack.

The refurbished market’s H1 2020 period saw a huge 16% drop compared to H1 2019. And as the pandemic worsened, Lockdowns and economic restrictions in the majority of areas meant a lower inflow of refurbished devices. Compared to last year, Europe, US, and others saw a 14%, 2%, and 10% drop respectively.

That said, the second half gave a bit of breath to the industry thanks to giants like Apple’s iPhone launch cycle. Precisely, according to Senior Research Analyst Glen Cardoza, Apple’s share in the secondary market grew from 39% to 42%.

The Black Market and Recommerce(reverse commerce- selling of old/new products) also grew in 2020. Add to this, the ASP(Average Selling Price) of refurbished LTE devices saw a rise in Price.

Overall, the majority of countries mainly faced a decline in the refurbished smartphone market due to the COVID-19 and as it is expected to subside with vaccine rollout, we can expect a rebound this year.

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Honor smartphones may soon get support for Google Mobile Services

Jeet — Wed, 20 Jan 2021 05:56:20 +0000

Honor, the newly independent company in China, is currently streamlining its business and forming new relationships with partners and suppliers. While it is making deals with component suppliers, the company is also working on getting the support of Google.

As per the latest report coming from Russia, Google Mobile Services (GMS) could soon make a comeback on Honor devices. This is primarily because the company is no longer a part of Huawei and thus, sanctions imposed by the United States on the Chinese giant no longer apply to Honor.

It further mentions that the return of Google services of Honor smartphones could happen around Spring. The company is already working on two new phone lineups that will have support for Google Mobile Services. This should bring back official Android support as well as a host of other Google applications.

With the introduction of Google services on Honor smartphones, new devices getting launched by the company will no longer have Huawei AppGallery pre-installed. However, the older devices will continue to have AppGallery.

EDITOR’S PICK: Tencent bans over 1.2 million hackers from PUBG Mobile in just 6 days for cheating

For those who are unaware, in May 2019, US President Donald Trump signed an executive order banning Huawei from dealing with American companies, cutting off access to Google’s services as well as many others. Since Honor was a sub-brand of Huawei, its devices were also not able to use GMS. To make sure that the brand survives, Huawei sold off Honor in November last year.

Apart from establishing relations with suppliers, the company is also working on establishing its presence in the market. The company has started its own online store named Honor Mall and is planning to launch several offline stores.

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USA revokes licenses of Intel and others to supply chips to Huawei

Jeet — Mon, 18 Jan 2021 06:18:12 +0000

Just when it seemed that things are finally lining up for Huawei, the company has been dealt with another major blow by the Trump administration in the United States. As per the report from Reuters, the Trump administration has notified the Chinese giant that it is revoking certain licenses granted to its suppliers, including Intel.

It doesn’t stop just there. On top of that, it has also informed Huawei that the administration is planning to reject dozens of applications for licenses to supply components and services to Huawei.

This is yet another attempt by the United States to weaken the world’s largest telecommunication equipment maker which it sees as a national security threat because of its origin and base in China.

In an email to Reuters, Semiconductor Industry Association said that the Commerce Department had issued “intents to deny a significant number of license requests for exports to Huawei and a revocation of at least one previously issued license.”

EDITOR’S PICK: MediaTek Dimensity 1100 chipset leaks online as a toned-down variant of the upcoming Dimensity 1200

However, sources aware of the development claims that as many as eight licenses from four companies have been revoked by the United States. It is also said that along with Intel, Japan-based flash memory chip maker Kioxia Corp’s license has also been yanked.

It seems that companies that received the “intent to deny” notices have 20 days to respond, and the Commerce Department has 45 days to advise them of any change in a decision, otherwise it becomes final. After that, Companies would have another 45 days window to appeal that decision.

After more than a year of restrictions, the United States had finally started issuing licenses to companies for commencing supplies to Huawei as long as the components were not related to the development of 5G technology. And now just months after that, the U.S. government is backing out from that as well, incurring hundreds of billions of losses for companies tied-up between this trade war.

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Trump bans eight Chinese apps in the US, including Alipay and WeChat Pay

Jeet — Wed, 06 Jan 2021 04:39:25 +0000

President of the United States, Donald Trump, who lost the election and is set to leave office in a couple of weeks, has signed an executive order banning transactions with eight Chinese applications, including Alipay and WeChat Pay.

Interestingly, the order is set to take effect in 45 days, after Donald Trump leaves office. The applications banned with this executive order includes apps from some of the biggest companies like Ant Group and Tencent.

In an attempt to justify the ban, Trump said that the applications can access private information from users and could be used by the Chinese government to “track locations of Federal employees and contractors, and build dossiers of personal information.”

Several US-based companies, including Apple, Ford Motor, Walmart, and Walt Disney previously objected to an executive order by Donal Trump that banned Tencent’s WeChat as well as ByteDance’s TikTok. A federal court has issued a preliminary injunction blocking the ban on WeChat.

EDITOR’S PICK: Honor seems to be finally cooperating with Qualcomm for chipset supply for its upcoming smartphones

As noted above, the executive order bans Alipay, a payments application from Ant Group with more than a billion users. It also bans three applications from Tencent, which includes WeChat Pay, QQWallet, and Tencent QQ. Other apps in the list include CamScanner, SHAREit, Vmate, and WPS Office.

The move seems to be furthering the US-China trade war which started when Donald Trump issued an executive order banning China-based Huawei Technologies, the world’s largest telecom equipment manufacturer.

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Honor plans producing 100 million smartphone units in 2021

Jeet — Tue, 22 Dec 2020 06:25:04 +0000

Honor, which was started as a sub-brand of Huawei, recently became an independent company after it was sold off to Zhixin New Information Technology Co. Ltd. Going forward, the company has some ambitious plans.

As per the report from Nikkei Asia, Honor has planned to produce about 100 million smartphone units and the company has already contacted its suppliers in the United States informing the same.

But it remains to be seen if the company manages to produce the required quantity of components as it will likely need to go through the approval process of the United States because of Huawei being put on Entity List.

The company is also working on strengthening its supply chain. Soon after the company became independent, it started talks with Qualcomm for chipsets and both of these companies are in advanced talks and could soon reach a deal. MediaTek is also evaluating legal options to supply chipsets to Honor.

EDITOR’S PICK: Honor’s Chief Executive Zhao Ming confirms to launch a flagship smartphone in the future

So far, most of the devices from Honor were powered by the company’s own Kirin chipsets. But that is not possible now as the recent sanctions on Huawei have made it impossible for Kirin to manufacture chipsets.

Whether Honor manages to achieve its goal of making 100 million units in 2021 will be dependent on its ability to procure components. On the other hand, Huawei is expecting to make 60 million units next year.

So, in total, both these companies plan to make 160 million units of smartphones, which is about 20 percent less than what Huawei managed to produce in 2019. Although Huawei was the leading smartphone company globally earlier this year, its market share is declining rapidly because of the sanctions.

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SMIC ban by the U.S. will affect advanced chip development

Jeet — Mon, 21 Dec 2020 07:20:11 +0000

Semiconductor Manufacturing International Corp., known as SMIC, was recently put on Entity List or U.S. export control blacklist. Now, the company has said that the move will hamper the development of its cutting-edge technologies.

The company has released a statement after doing an initial assessment and said that “the U.S. move will badly affect the company’s Research & Development and the production capacity construction of advanced technologies of 10 nanometers and below.” It added that there’s no significant impact on the operation and finances in the short-term as the company isn’t mass-producing the chips using the 10nm technology.

SMIC getting banned by the United States is a major blow for the Chinese government which is working towards making the country self-sufficient when it comes to manufacturing semiconductors and the company is leading the campaign.

From the development, it appears that the United States is determined to thwart every effort of China or Chinese companies to procure components for advanced technologies. To provide components to the companies in the Entity List, the U.S.-based firms will have to apply for a special license.

EDITOR’S PICK: OnePlus and Google are working together to improve Wear OS

This is similar to the situation Huawei is facing right now, which was put on Entity List by the Trump administration in its ongoing US-China trade war. While the Executive Order from Trump cited national security risk, no evidence to back that claim has been produced. Huawei has time and again denied any such allegations against the company.

SMIC has said that the company will continue to cooperate with relevant U.S. government bodies and will be taking all feasible measures to minimize adverse effects and work out a solution to continue its development.

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USA could pressure South Korea to ban Huawei from its 5G network

Jeet — Mon, 07 Dec 2020 07:52:29 +0000

In the ongoing trade war between the United States and China, several companies have already bowed down to the pressure from the U.S. to ban Huawei from their 5G infrastructure development. Now, it seems that Korea could be added to the list soon.

As per a report coming from Korea, a U.S. Congress committee has submitted a new bill that urges Pentagon to consider mobile security risks posed by the Chinese tech companies when it deploys troops and weapons overseas.

The bill named the 2021 National Defense Authorization Act, has been approved by the Senate Armed Services Committees and will soon be put on the vote. If passed, it could be used to force host countries to ban Huawei or other companies that the United States deems as a security risk.

Given that Korea heavily relies on heavily armed U.S. troops for its defense, it could be forced to ban Huawei. This is because LG UPlus, one of the mobile network operator in Korea, is using 5G equipment from Huawei.

EDITOR’S PICK: Samsung’s Tizen OS becomes the leading Smart TV platform globally, reports Strategy Analytics

LG Uplus has been using Huawei equipment in its network since 2013, which now accounts for over 30 percent of its total infrastructure. While the U.S. government has asked LG Uplus to stop using equipment from the Chinese giant but the company maintains that it’s impossible to do so given the costs involved.

However, the company has said that it is using Ericsson’s equipment in Pyeongtaek and Uijeongbu, where U.S. military bases are located, and their vicinities. On the other hand, Korea says that it is up to the network operator to determine which equipment to use.

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United States adds China-based chipmaker SMIC to the Entity List

Jeet — Fri, 04 Dec 2020 05:50:56 +0000

The Trump administration has confirmed that two major Chinese companies — chipset maker SMIC and oil producer CNOOC have been added to the trade blacklist, alleging them to be Chinese military companies.

The Department of Defence has designated four companies for being owned or controlled by the People’s Liberation Army. The list includes Semiconductor Manufacturing International Corp (SMIC), China National Offshore Oil Corp (CNOOC), China Construction Technology Co. Ltd, and China International Engineering Consulting Corp.

With the addition of these four companies to the trade blacklist of the United States, there are now 35 countries on the list. Companies on the list are barred from procuring or using technologies or goods made in the United States.

A couple of months ago, it was reported that the Pentagon was holding discussions to determine id the SMIC should be added to the Commerce Department Entity List. SMIC is one of the biggest players in China when it comes to chip manufacturing.

EDITOR’S PICK: Semiconductor equipment sales jump by 30 percent globally in the third quarter of 2020

Semiconductor Manufacturing International Corp (SMIC) heavily relies on the United States for supplies and getting blacklisted will make it a bit difficult for the company and will also hinder China’s plan to boost its chipset manufacturing technology.

However, blocking these companies from trading with US-based firms also hurts the suppliers, in this case, the US companies, as several of the companies highlighted in their request to the government to allow them to continue doing business with Huawei after the Chinese giant was added to the Entity List in May last year.

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Foxconn is shifting some Apple iPad and MacBook production to Vietnam

Jeet — Fri, 27 Nov 2020 05:47:41 +0000

Ever since the US-China trade war escalated last year, Apple has been trying to reduce its dependence on China for manufacturing its products. As a result, iPhone contract manufacturers have now shifted significant production to other countries like India.

Now, as per the latest report, Foxconn is shifting the assembly of some iPad and MacBooks to Vietnam from China after getting requests to do so from Apple. It is believed that this is because Apple wants to reduce the impact of the US-China trade war.

The United States, under the presidency of Donald Trump, has targeted Chinese companies by imposing several trade restrictions and banning some of the companies by categorizing them as a national security risk, without providing any proofs for the claim.

As a result, Taiwanese manufacturers started moving some of the production away from China to other countries like India, Vietnam, and Mexico as they anticipated similar actions for their production lines.

EDITOR’S PICK: India’s Lava Mobiles reportedly starts manufacturing smartphones for Nokia and other brands

With the latest development, Foxconn is now building assembly lines for iPad and MacBook devices at its Vietnam plan located in northeastern Bac Giang province. It is expected to be ready in the first half of 2021.

It is not clear how much of the production will shift from China but persons aware of the matter have confirmed to Reuters that the move was requested by Apple as the company wants to diversify production. This would mark the first time that the production of iPad moving to Vietnam as all the iPad models are currently being manufactured in China.

Recently, Foxconn announced a $270 million investment for setting up a new subsidiary named FuKang Technology Co Ltd, which could be to support the Vietnam expansion. It is also being reported that the Vietnam facility will also make TVs for Sony.

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ZTE poses national security risk to the United States, reaffirms FCC

Jeet — Wed, 25 Nov 2020 04:31:15 +0000

The Federal Communications Commission (FCC) has revealed that it has rejected a petition from China-based ZTE Corp which had asked the agency to reconsider its decision to designate the company as a U.S. national security threat to communications networks.

For those who are unaware, earlier this year in June, FCC has formally designated China-based Huawei Technologies and ZTE as a national security threat. With this, the companies were barred from tapping an $8.3 billion government fund to supply equipment.

Huawei has also made a similar request to the FCC to which the agency said that it is extending the timeline to respond to Huawei’s petition until 11th December “to fully and adequately consider the voluminous record.”

Prior to FCC declaring these two Chinese giants as a security risk, in May 2019, Donald Trump had signed an executive order banning U.S. companies from using telecommunications equipment from companies that pose a national security risk and has also added Huawei to the “Entity List” which is basically a trade blacklist.

EDITOR’S PICK: POCO M3 Hands-on overview– a refreshing new smartphone design for the budget segment

The reaffirmation from FCC indicates that the agency is determined to keep both these Chinese companies away from the country’s telecom market where small rural carriers are still relying on their cheap network equipment.

Although both Huawei and ZTE have denied the allegations leveled against them, the United States has been increasingly making it difficult for the Chinese companies to operate in the U.S. because of the US-China trade war.

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Huawei urges United Kingdom to reconsider 5G ban

Jeet — Tue, 17 Nov 2020 07:55:48 +0000

Earlier this year, bowing down to the pressure from the Trump administration, United Kingdom (UK) banned Chinese giant Huawei from participating in the country’s 5G infrastructure and ordered companies to remove Huawei equipment by 2027.

Now, Huawei’s Vice President Victor Zhang has urged UK Prime Minister Boris Johnson to revisit the decision to ban Huawei from the 5G network development and claimed that it will worsen England’s north-south divide.

He also urged the UK to stay true to its roots as the birthplace of the first Industrial Revolution and added that the government could not afford to fall behind others in the 5G communication revolution.

Victor Zhang also added that this is worrying because the UK is more focused on the geopolitical conflict rather than focusing on improving the economy and making sure that the country grabs the opportunity to be a global leader post-Brexit.

EDITOR’S PICK: Huawei announces selling off its Honor subsidiary to Zhixin New Information Technology Co. Ltd

UK’s Culture Secretary Oliver Dowden had said in July that the decision to completely remove Huawei from the UK’s 5G network could delay the rollout of 5G by up to three years and cost around £2 billion.

There are concerns related to using Huawei’s equipment in 5G development because of the company’s alleged ties with the Chinese Communist Party. Critics of the company say that China could use Huawei as a backdoor to spy on communications. However, Huawei has denied all such allegations time and again.

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Sweden halts 5G auctions after Huawei gets relief from court

Jeet — Tue, 10 Nov 2020 05:38:01 +0000

Ever since the United States imposed restrictions on Huawei, the Chinese giant has been struggling to get into the 5G communications market in several countries and the latest country to ban Huawei is Sweden.

After being excluded from the 5G networks, Huawei filed a lawsuit against the Swedish telecoms regulator PTS, and to the relief of the Chinese company, the court has now granted a stay order against the decision.

As per the report coming from Reuters, some parts of PTS’ decision prior to the upcoming 5G auction will not apply until further notice and it would allow Huawei’s involvement in the 5G spectrum auction in Sweden.

EDITOR’S PICK: China launches the world’s first 6G experimental satellite

After the court’s decision, the auctions have been halted by the authorities, which would have benefited Nokia and Ericsson. PTS is now planning to review the possibilities of starting the process as soon as possible while Huawei is trying to have a dialogue with them to become a certified vendor.

For those who are unaware, Chinese telecom equipment manufacturers — Huawei and ZTE were banned by Sweden from taking part in the upcoming 5G auction, citing security concerns. Also, PTS had asked companies that are taking part in the auction to remove Huawei and ZTE from existing in the central functions by 1st January 2025.

After the United States banned Huawei in the country for the telecom networks, it is also pressuring other nations to follow the suit with the ban. Several countries bowed down to the pressure, including the UK which banned the Chinese giant and ordered companies to replace all Huawei equipment from the country’s infrastructure by 2027.

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China tech industry relieved by Biden’s win, but are still cautious

Sean — Mon, 09 Nov 2020 11:24:36 +0000

The tech industry in China has breathed a sigh of relief as Joe Biden won the US Presidency. This arrives as the previous President, Donald Trump, had been targetting the Chinese industry as a part of the US-China trade wards and political disputes.

According to a Reuters report, analysts have stated that the Chinese tech industry is hoping that Joe Biden would be more welcoming of a more constructive relationship and would de-escalate the rivalry between both nations. The four year long Trump term had been a major obstacle for numerous Chinese companies and had taught the importance of self reliance as well. Although, despite Biden winning, the nation still plans on focusing on its domestic tech capabilities, as per executives and analysts.

Fang Xingdong, director of the Consortium of Internet and Society at the Communication University of Zhejiang, stated that “When Biden takes office, tech companies in China might be relieved. At least, the United States is supposed to re-advocate openness, re-respect fair competition, and re-advocate innovation. However, in the high-tech field, competition and game theory will not end, and China and the U.S. will compete with each other with true innovation capabilities in the next decade.”

The position the new US President takes on the trade tensions between both nations remains to be seen. Furthermore, the impact of the new leadership on Huawei, ByteDance’s TikTok, or even WeChat is still unknown as well. So we will have to wait and see how Joe Biden handles the alleged security risk that these companies pose to the United States.

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Qualcomm confirms applying for license to supply chipsets to Huawei

Jeet — Thu, 05 Nov 2020 04:17:12 +0000

Since the past few weeks, more and more companies are getting approval from the United States to resume doing business with the Chinese giant Huawei. In line with that, the world’s leading chipset maker Qualcomm has now confirmed that the company has applied for a license to supply chipsets to Huawei.

The confirmation comes from Qualcomm’s CEO Steven Mollenkopf when he was revealing the company’s performance for the fiscal year 2020. However, it has been confirmed that Qualcomm has applied for the license but hasn’t been granted it yet.

In the past few weeks, companies like Intel, AMD, Samsung Display, and Sony among others have received permission from the United States government to continue doing business with Huawei.

This is an important development for the Chinese giant, which is currently working on its options to keep its business afloat as more and more restrictions imposed on the company threatens its survival.

EDITOR’S PICK: OEMs ramp up IC parts orders in a bid to fill the vacuum created by Huawei’s slump

As per the reports, more than 300 companies have applied for a special license that is needed from the U.S. government to continue conducting business with Huawei. From that, about one-third have been granted a license.

Recently, it was reported that the United States is providing licenses to the companies as long as the components supplied to Huawei are not being used for the 5G business. Apart from Qualcomm, Samsung Electronics is also waiting for approval.

In the fourth-quarter results published by Qualcomm for the fiscal year 2020, it reported $6.5 billion in revenue, higher than its estimation of $5.93 billion. The company had reported $4.8 billion in revenue over the same period last year, making this a 35% year-over-year increase.

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Sony gets license to supply camera sensors to Huawei

Jeet — Fri, 30 Oct 2020 06:10:23 +0000

Huawei has been restricted by the United States after the company has been put on Entity List last year. A couple of months ago, new sanctions were imposed on the Chinese giant, cutting its access to several necessary components, including chipsets.

But now, more and more companies are getting approval from the United States government to continue doing business with Huawei. In the latest development, Sony and Omnivision have been granted licenses to supply components to Huawei.

As per the report, Sony and OmniVision, two of the world’s leading companies that provide camera imaging sensors, have received approval from the United States and can now ship products to Huawei Technologies.

Sony is the world’s leading supplier of camera imaging sensors while Omnivision is the third-largest supplier after Samsung. While Omnivision is headquartered in California, the company was acquired by a China-based fund in 2014.

The development could be a major relief for Huawei as high-end camera performance is one of the factors behind the success of the company’s premium Mate-series and P-series smartphones globally. With this development, Huawei can continue to offer smartphones with advanced camera features.

EDITOR’S PICK: Xiaomi surpasses Apple to become the world’s third-biggest smartphone brand in Q3 2020

Since the U.S. government added new sanctions on the Chinese giant, Sony had trimmed its capital spending plan for three years, as the restrictions created a gap of billions of dollars in sales from supplying image sensors to Huawei.

Apart from these two companies, Intel, AMD, and Samsung Display have also received approval from the United States to continue doing business with Huawei. While Samsung Display will be able to provide OLED panels, AMD and Intel are supplying the Chinese giant with chipsets for its laptop business.

More than 300 countries have applied for a special license with the United States government to keep doing business with Huawei, including companies like Samsung Electronics and SK Hynix. Recently, it was revealed the U.S. is granting licenses as long as the component supplied is not related to the company’s 5G business.

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US allows companies to supply chips to Huawei as long as it’s not for 5G business

Jeet — Thu, 29 Oct 2020 05:28:38 +0000

In a major relief to the Chinese tech giant Huawei, the United States is now allowing more and more chipset makers to supply components to the China-based company as long as they are not used for the 5G business.

A new report coming from Financial Times indicates that this could offer a potential lifeline to Huawei as the sanctions imposed against the companies were more and less threatening the survival of the giant.

The smartphone business of Huawei, which is the most hit area for the company, now has a chance to make recovery. The report indicates that the application for a license to supply components to Huawei gets approved if the company demonstrates that the technology does not support 5G.

One of the executives of an Asian semiconductor company has said to FT that chips for mobile devices are not a problem and added that the company is optimistic to get a license to continue doing business with Huawei.

In an apparent US-China trade war, the United States put Huawei on Entity List in May last year, effectively banning the company from doing business with US-based companies or companies dealing with American technology, without a special license from the U.S.

EDITOR’S PICK: Huawei leads Chinese smartphone market in Q3 2020 with 36% market share, reveals CINNO Research

A couple of months, the restrictions were tightened as the United States banned the supply of chipset and technology to Huawei. While it stopped the supply of chips to Huawei, the ban has also been proven damaging for the overall semiconductor industry as suppliers anticipate loss of billions of dollars.

However, in recent times, more and more companies are getting a license to deal with the Chinese giant. Samsung Display recently got a green signal to provide OLED panels to Huawei and prior to that, Intel had confirmed that it received approval to supply chips.

It is being said that Japan-based Sony and China-owned OmniVision, which has its headquarters in California, have also received approval to supply CMOS image sensors that are used in smartphone cameras.

As per the report, more than 300 companies, including the likes of Samsung Electronics, Qualcomm, MediaTek, among others have applied for a license to do business with Huawei and they are expected to get approval in the coming weeks or months.

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United States is reportedly considering to add China’s Ant Group to trade blacklist

Jeet — Thu, 15 Oct 2020 07:24:12 +0000

The on-going US-China trade war keeps intensifying with every passing week. In the latest development, the U.S. State Department has submitted a proposal to add China’s Ant Group to a trade blacklist.

The development was first reported by Reuters, citing two people aware of the matter. However, it is not yet clear when the relevant agency in the government will review the company to determine its addition to the Entity List.

The news comes at a crucial time as the Ant Group is going public and could be worth up to $35 billion with dual lists in Shanghai and Hong Kong. It is reported that the move from the U.S. comes as the China hardliners are seeking to deter U.S. investors from taking part in the initial public offering (IPO).

The Trump officials fear Ant could potentially give the Chinese government access to sensitive banking data belonging to U.S. users. This is the same reason that the U.S. government has been using to ban Chinese companies, without actually offering any proof to back the claim.

EDITOR’S PICK: OPPO confirms Dynaudio partnership for its first Smart TV

Adding Chinese companies to the Entity List has become the go-to move for the United States government. It started with Huawei in May last year, which has made it very difficult for the company to carry on with its smartphone business.

While the move of adding the company to Entity List has been effective for Huawei, the same move for Ant Group is unlikely to have any substantial effect given that the company has only 5 percent of its business outside of China.

For those who are unaware, Ant Group is the leading mobile payments company in China and offers several services, including loans, payments, insurance, and asset management. Alibaba Group Holding has a 33 percent stake in Ant and the company is controlled by Jack Ma, founder of Alibaba.

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TikTok and WeChat ban in the US breaks WTO rules, claims China

Jeet — Tue, 06 Oct 2020 06:36:25 +0000

Ever since the Trump administration announced a ban on ByteDance-backed TikTok and Tencent’s WeChat apps in the United States, there has been an on-going legal battle that has so far prevented the ban to go into effect.

Now, China is claiming that the ban on these two apps by the United States is in violation of the World Trade Organization’s rules, reports Reuters. And it’s not just the US, China has also accused India of the same for banning TikTok and several other Chinese apps.

At the Council for Trade in Services meeting at the World Trade Organization, China took the floor to accuse the USA and India of taking measures that are “inconsistent with WTO rules, restrict cross-border trading services and violate the basic principles and objectives of the multilateral trading system.”

During the lengthy exchange at the council, China said that there was no evidence to support the claims by the United States and India regarding data collection and it added that TikTok’s data collection is standard practice by thousands of apps worldwide. It also described the failure of the U.S. for providing concrete evidence of the reasons for its measures a “clear abuse” of rules.

EDITOR’S PICK: Qualcomm Tech Summit set for December 1; Snapdragon 875 expected to launch

Last month, the Trump administrator ordered to ban the downloads of TikTok and WeChat in the United States and stop all the transactions with those two companies. It has also ordered ByteDance to sell TikTok to a US-based company by 14th November in order to avoid a ban in the US.

However, a U.S. judge has questioned the government’s claim of national security and has agreed to temporarily block the ban on the app. In order to avoid getting banned in the United States, ByteDance has agreed to set up a new entity called TikTok Global with 80 percent of the stake. The remaining stake will be acquired by Oracle and Walmart.

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US-China trade war Archives - Gizmochina

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