Huawei ban: USA re-launches semiconductor war, China retaliates

Huawei ban: USA re-launches semiconductor war, China retaliates

Not surprisingly, the American anti-Huawei embargo was renewed on Thursday, May 14. But not only has the Huawei-ban been extended until 2021, it has also been intensified by restricting sales of semiconductors to the Chinese giant, which are essential to its Kirin chips. China is already preparing its counterattack.

TSMC, a global semiconductor manufacturing giant (which makes the chips for the Apple iPhone, for example) has just announced that all future orders on behalf of Huawei will be stopped. The decision was taken to comply with yet another U.S. government ban.

Under these new measures, manufacturers of foreign technologies (such as Taiwan-based TSMC) but using American equipment, hardware, or software are prohibited from doing business with Huawei unless they obtain a license from Washington. The aim is to cut off Huawei's supply of semiconductors, an essential component in the manufacture of its Kirin chips.

China strikes back

Faced with this umpteenth outburst in a long trade war, China is already preparing its response. According to Reuters, quoting the Chinese tabloid Global Times close to power, Beijing is reportedly about to create its own "list of unreliable entities."

Like the United States, China could therefore register American companies and launch investigations or impose restrictions on them. According to the Global Times, the government plans to target companies such as Apple, Boeing, and Qualcomm.

Needless to say, China is a key market for manufacturers like Apple and Qualcomm. Admittedly, Apple is far from being as dominant as Huawei in terms of market share, but 14.8 percent of the Cupertino company's total revenues are generated in this Chinese market, for example. This is also where most of its manufacturing plants are located.

Global smartphone sales are down 17% in the first quarter of 2020 compared to 2019 (Q1). What is certain is that this series of measures and countermeasures can only weaken the already feverish smartphone market.

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  • Bob Drake Jun 10, 2020 Link to comment

    Hope this embargo will end soon

  • RON Jun 7, 2020 Link to comment

    Huawei is target due to USA and china trade war, USA company supply memory chip to Huawei but they have put a stop to it and now china is vering for it.
    Huawei can survive for an year without it as they keep a lot of stock already.

  • Reg Joo May 25, 2020 Link to comment

    The US should ease up on certain products, like.. Smartphones! Don't care about the rest.

  •   46
    Deactivated Account May 19, 2020 Link to comment

    I just hope the world make China pay for their misdeeds, not just the US. Huawei is a state owned government run company, run by a government that has proven their bad intentions many times over. When you buy Huawei you support that corrupt government maybe you like the current world situation but I don't and will never buy anything from them if I can avoid it.

    • Rabbitkun May 19, 2020 Link to comment

      That's funny, but the NSA might be happy you're supporting US. 😆

    • Jerry's W. May 19, 2020 Link to comment

      i notice when saying something critical about the USA administration or government, your comnent will be removed here. Land of democraty? My ass lol.
      Not ever there was any evidence whatsoever found in Huawei hard- or sofyware spying on anybody / anything, its all only in the head of Trump.

      Journalism should be independent but sadly I have to make the conclusion that's here @AndroidPit not the case....

      oh well, this will be removed also, so why bother...

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