Huawei gets a way out – U.S. new laws will be completely ineffective


Huawei brand

Since the beginning of last year, the United States government and Chinese manufacturer, Huawei, has been at loggerheads over multiple issues. The U.S. issued a ban on Huawei which prohibits the company from doing business with American companies. The major effect of this ban on Huawei is that its smartphones can not use Google Mobile Services. However, Huawei still shipped 240 million smartphones in 2019. This shows that the American ban had little or no effect on the company.

Huawei HiSilicon

While we were hoping that the Trump administration will relax the ban on Huawei, it did the exact opposite. The U.S. Department of Commerce recently announced that all manufacturers (worldwide) that use American technology must obtain a license before producing chips for Huawei. The target of this new law is obviously TSMC. The Taiwanese chipmaker is the “brain” behind Huawei’s Kirin chips. However, TSMC uses American technology to make Kirin’s SoCs. This means that TSMC will need a license from the US before making Huawei’s chips. Of course, it will not get the license.

Huawei responds to the U.S. latest ban

In response to the new laws, Yu Chengdong, CEO of Huawei’s consumer business, stated that the US ban on Huawei is actually for the United States to maintain technological hegemony. According to him, this is simply technological bullying. He also believes that the U.S. underestimates Chinese technological advancement.

After the release of new US sanctions, TSMC, which has been supplying Huawei, has been on the cusp. There have been reports that TSMC is no longer taking Huawei’s orders. However, TSMC says that there is no truth in the report. For TSMC, losing Huawei is a huge loss. The Chinese manufacturer is its second-largest customer, after Apple. Thus, no company will want to lose its second-largest customer for any reason. 

Foxconn seems to give Huawei a lifeline

In all, Huawei seems to have a way around the U.S. latest ban. Besides TSMC, another major chip maker is Foxconn (another Taiwanese company) is ready to take Huawei’s orders. Recall that after the ban last year, Foxconn canceled all Huawei’s orders. However, Foxconn’s founder, Guo Taiming, has now said that the company is open to cooperate with Huawei and other Chinese companies. If TSMC does not take Huawei’s orders and Foxconn does, the U.S. new laws will be technically ineffective.

Foxconn 

This also means that Huawei has new partners, and in the face of the sudden drop in Apple’s mobile phone orders, Foxconn also needs Huawei’s orders. Presently, Huawei has orders worth $700 million with TSMC.

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SMIC is another option

In addition, it has also placed some orders with SMIC, a Chinese chipmaker. Although there is a gap between SMIC and TSMC, the former has made substantial progress in the 10nm / 7nm process. SMIC’s N + 1 process which is slightly behind  TSMC’s 7nm in terms of performance sold out in Q4 2020. Therefore, even if TSMC really cuts off supply to Huawei, we believe that SMIC and maybe Foxconn can help Huawei overcome the difficulties. 

Huawei to move from TSMC to SMIC

MediaTek is also on the pipe-line

In recent years, the development speed of MediaTek is indeed amazing. With Huawei’s support, we can not underestimate what MediaTek can offer. Major Chinese manufacturers usually rely on MediaTek for low-end devices. However, the Redmi Note 8 series (mid-range) which uses a MediaTek chip was a great success. This series sold over $4 million is just eight months. 

MediaTek Dimensity 1000 for 5G smartphones

Furthermore, MediaTek’s latest Dimensity 5G chips have been Amazing. The Dimensity 1000, 1000+, 820, and most recently 800 are looking good. The Dimensity 820 is a high-end 5G chip using a 7nm process technology. It integrates the world’s top 5G modem. At the same time, it conserves power and the improvement is great. 

Honor’s president confirms MediaTek chips for future phones

Yesterday, Honor’s president, Zhao Ming, confirmed that Honor and probably Huawei would consider MediaTek’s 5G chips. This means that if Huawei chips encounter a supply cut in the future, MediaTek’s 5G chips may also be a good choice.

Although the U.S. intends to completely cut off the Huawei chip supply chain, the company has alternatives. If TSMC fails, there is SMIC, MediaTek, and most recently Foxconn. It will be interesting to see how the whole brouhaha ends. 

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42 Comments

  1. Surfer9
    May 22, 2020

    Good to see alternatives exist for Huawei, in the end trump is trying to kill competition to only benefit his companies which will hurt us consumers in the world.. the more companies the more choices we have the more inventions and the lower prices will be. So here’s a hope that Huawei can resist and stay strong to compete for the benefit of us all.

  2. Sam 1308
    May 23, 2020

    American government can’t even stop a private owned company How can they stop China?

  3. Scamp49plus
    May 23, 2020

    This is what happens when you let real estate agents make deals. They think they have won when actually they are losing in the long run. Whatever happened to finesse and diplomacy?

  4. Timothy Parker
    May 23, 2020

    Whoever wrote this article has no clue what they’re talking about.. First of all foxconn doesn’t manufacture chips.. They put other people’s chips into products… That doesn’t help Huawei.. Also SMIC doesn’t manufacture 7nm or 5nm chips which is what Huawei will need and even if they did make those chips it would be with American tech so they would need a license..Huawei has no outs… Nothing they can do to save them… No suppliers can replace TSMC and if they could it would require American tech.. The fact is Huawei can’t exist unless America allows them too.. They need American products to survive..

  5. Timothy Parker
    May 23, 2020

    Huawei isn’t a private owned company… It’s a state controlled company disguised as a private company and they will be out of business in 1 year unless America makes a deal to allow them to exist

  6. Timothy Parker
    May 23, 2020

    America won long ago.. Without chips Huawei can’t make products and every chip manufacture on the planet uses American tech which means no one can make them for Huawei without AMERICAN permission..foxconn doesn’t make chips.. The author of this article has no idea what he’s talking about…SMIC can’t make the chicks Huawei needs and MediaTek can’t either and even if they could it would be with American technology therefore they wouldn’t be allowed to make them for Huawei

  7. Timothy Parker
    May 23, 2020

    There are no alternatives The author of this article doesn’t know what he’s talking about… Foxconn doesn’t make chips They are not a semiconductor manufacturer… SMIC doesn’t have the ability to make the chips Huawei needs and even if they did it would require American tech… MediaTek doesn’t make CPUs that Huawei uses either… Only TSMC AND SAMSUNG CAN MAKE THOSE CHIPS.. and neither one of them would be allowed to make them for Huawei… Huawei will be out of business in one year unless they and China come begging America to make a deal…

  8. Doron Matmor
    May 23, 2020

    Remember !!! Nazism=Communism. Time to knock them down. Start with blocking their financial feeding tube. All those that support entities in China are supporting evil ,and therefore I believe who ever help them will go under as well

  9. Vansttn
    May 23, 2020

    Wow.. what a bs… and still you believe what you are saying…

  10. Timothy Parker
    May 23, 2020

    Everything I said was a 100% fact.. foxconn DOES NOT MANUFACTURE CHIPS…SMIC can only make 12nm chips while Huawei uses 7nm and 5nm chips from TSMC and media Tek doesn’t make 7nm or 5nm chips either.. They mostly make sensors… EVERY single chip maker uses American Tech which means they can’t make them for Huawei
    Thanks not bs it’s 100% facts..Huawei has no alternatives.. They can’t make products without American permission… If what I said isn’t fact then tell me what isn’t right…

  11. Raja Iyer
    May 24, 2020

    Great! Fantastic. Huawei does manufacture reliable phones with good build quality and performance! And it’s common sense to realize that technology can’t be supressed by using such cheap tactics. Its obvious that Huawei or any company for that matter will find a solution over time. In fact this move only pushes China more toward developing its own infrastructure in chip making technology. And that’s good news for all manufacturers there

  12. Eternalmaster Ofusmedia
    May 24, 2020

    Calm down, triggered troll. You look really desperate feeling the need to regurgitate the same trite propaganda under every comment by others. Yet, everything that comes out of your mouth still contains 0% evidence. Desperate trolls like you had claimed the same things that you’re claiming now more than a year ago. They were proven dead wrong just as you will be too, and will shut up. Just you watch, sore loser. ROFLMAO!

  13. Eternalmaster Ofusmedia
    May 24, 2020

    No matter how desperately you huff and puff and scream in front of your keyboard while pulling your hair out in your impotent frustration, the fact remains that America lost long ago, and will lose even more from now on, because it just brought onto itself the death knell of its technological industry. America had it coming. America deserves it. America will get used to it. America will suck it up. ROTFLMAO!

  14. Eternalmaster Ofusmedia
    May 24, 2020

    You’re projecting, and looking extremely desperate copying and pasting the same tripe over and over again, because obviously you don’t know what you’re talking about. You can’t provide any evidence for your childishly inane and extremely ignorant claims. So, try again, murican troll. ROTFLMAO!

  15. Jermel Clark
    May 24, 2020

    The PRC is attempting the evil Communist takeover of the civilized world. The US and its allies are the last holdout of democratic freedom fighters. I don’t know why China hasn’t employed espionage to produce the microchips itself. They have the J20 so why don’t they want some substandard poor performing Chinese microchips. They could patent those Chinese microchips and take the US market share.

  16. Joe G
    May 24, 2020

    Then what? How are they going to market their products internationally? Most countries adhere to international law and without a license, none of these companies can legally produce x86 or ARM chips, ARM will cease support and not work with them anymore.

  17. Justin ojara
    May 24, 2020

    the thing is china has to prove to the world that they have their own technology and can stand up to the test, china is the biggest problem of huawei their marketing strategy and hunger for world dominance is the biggest problem the world has faced, first of all they have killed all the innovations companies, that have pioneered the making of phones in the first place ,everyone knows china has no technology except that the major world players took their factories to china and china has literally copied everything and threatens to throw every tech giants in future out of business, because they are always replacing everything with low quality cheap alternatives, people think its fun but it kills innovation, because if your just a manufacturer and you take an innovator out of business it means the future is bleak, i love trump and thats why i think America should take all of its companies out of china ,it may weigh heavy on their economy on the short term but, it will be good for the future, china cant be trusted much more that they deliberately abolish intellectual property rights in their country its sad.

  18. Justin ojara
    May 24, 2020

    people overate china and we know they are just copy cats,recently everybody was making noise of how huawei is the biggest and best 5g maker having the best patents, until nokia showed up true to some arguments i made one time , that how can a juniour superse a senior in the field that the senior started, its like china always wants to rush ahead of everyone to my opinion 5g technology is still not needed because we barely have the products that use its services its a future thing but just to be ahead of everyone china started bragging how they are ahead of everyone in 5g technology now the US and Nokia took the challenge and produced a 5g spectrum that is twice faster than huawei almost 3 times faster, what trump always believed that they can build something themselves they dont need huawei 5g.

  19. Adas Lesniak
    May 24, 2020

    International law means decree of US congres? Rest of the world may get tired of being ruled in authoritarian way. US was once part of British empire but because they had no say in how they were ruled…

  20. Timothy Parker
    May 24, 2020

    0 evidence? Do you need me to provide evidence that foxconn and SMIC and media Tek doesn’t make the chips Huawei needs? And that every chip maker in the world uses American tech to make it? Why am is sore loser? What did I lose? It’s seems your triggered because I pointed out the author wrote an article that has no truth in it.

  21. Timothy Parker
    May 24, 2020

    Your using the word projecting wrong lmao… And I’m not a troll I’m someone who knows the semiconductor industry and the things in the article are false… Your the troll attacking me while offering no facts.. Just attacks that show your defensive and know I’m correct

  22. Timothy Parker
    May 24, 2020

    America doesn’t rule the world that’s why America has many many allies and China has none… Because America follows the rule of law while China doesn’t… China has used rule of law to cheat and manipulate the west which is why the world is now turning against China

  23. Eternalmaster Ofusmedia
    May 24, 2020

    Still no evidence? Then obviously the only truth is that you are desperately running your mouth like the overflowing toilet that it is for whoever paid you to regurgitate the same ignorant propaganda, which means you have 0% credibility.

  24. Timothy Parker
    May 24, 2020

    First off America doesn’t have 50 cent’ers… China is the one who pays people to comment lies online..
    Also your asking for evidence that SMIC, and Foxconn don’t make the chips Huawei uses? If you need evidence for something as common and easily searchable as that then your the one with no credibility.. Do you really think foxconn is a chip maker? SMIC can only make 12nm chips and even that needs American tech.. If the Chinese masters would allow you to use Google you could easily see what I’m saying is 100% true…TMSC and Samsung are the ONLY companies who can make 7nm and 5nm… Seriously is you being paid 50 cents to post online worth it? Wouldn’t you rather have rights and freedoms?

  25. Timothy Parker
    May 24, 2020

    People like you are the reason china has no allies… For decades the west has built China’s economy and now the Chinese dictatorship has convinced people that we are the enemy… The west allowed China to join the WTO and the UN and China used that to steal and lie instead of being a member of the world community… They chose to try to dominate the world and opress their own citizens… That is why China will fail just like Nazi Germany..a country with no allies or friends can never defeat the entire United world…

  26. Xaphan Vassago
    May 24, 2020

    You do realize that America made China right? Without America the Chinese communist party would have fallen long ago. China literally offers nothing to the rest of the world. China has NEVER invented anything worth a damn. EVERY electronic made in China is based on American technology that China stole

  27. Eternalmaster Ofusmedia
    May 24, 2020

    So you still can’t give any evidence to any of your claims? Not surprisingly, you’re still projecting while being desperately defensive. Take a deep breath. It’s OK. America will still lose. ROTFLMAO!

  28. Eternalmaster Ofusmedia
    May 24, 2020

    Calm down, little girl. You do realize that China made America right? Without China making all of the world’s goods, the American regime would have fallen long ago by popular uprising against it from its own people who would otherwise not even be able to eat and live. Without China making the world’s medical supplies, America would already have a far higher death toll from the coronavirus infections, even though the death toll in America is already more than 100 times that of China’s, while that number in America is still surging exponentially.

    You do realize that you have no idea what you’re talking about right? America tried and failed to destroy China’s Communist Party while China had saved literally millions of American lives from being exterminated by the Japanese during WWII, because China fought most of the best Japanese troops to a stalemate on the ground.

    America literally offers nothing to the rest of the world other than wars and chaos.

    Ametica has NEVER invented anything worth a damn. Everything in America is based on technology from other countries that America stole and research done by other countries’ talented people, especially the Chinese, whom America also stole. ROTFLMAO!

  29. Timothy Parker
    May 24, 2020

    Lmao what evidence do you want? Evidence that foxconn doesn’t make chips? Evidence that SMIC can’t make less than 12nm? All you would have to do is a simple Google or in your case baidu search…I’m not saying anything controversial I’m saying basic things that are common facts..
    That would be like you asking me for evidence if I said Huawei makes 5G equipment… Would you really need evidence that Huawei makes 5G equipment or is that just common basic facts? Everything I said is basic facts I don’t need to provide you any evidence if you don’t believe me you can just look it up and see how long you are and how stupid you look… You are obviously a $0.50 employed by the Communist party to write nonsense that makes China look good… The facts are Huawei needs America to survive and if they want to survive they can come crawling and begging for America to let them live… China’s time stealing and growing by taking from others is over..They will now have to prove that they are not paper tigers and can stand on their own with their own innovation or else they will crumble..America can invest in India and build up India’s economy to replace China… China is replaceable and we will have India’s huge market to replace China’s

  30. Eternalmaster Ofusmedia
    May 24, 2020

    You look increasingly desperate while showing your exponentially decreasing IQ which is inversely proportional to the exponentially surging coronavirus death toll in the U.S. already more than 100 times that of China’s on a per capita basis. Don’t worry about China’s friends and allies, because they already have more than what America can count on. Yet, China is expanding its influence even further, while all that America’s Nazi regime can ever do is to use 0-cent simpletons like yourself to desperately project and orally masturbate with nothing but infantile Nazi and Cold-War propaganda. No matter how desperately you wish otherwise, America and its lackeys do not constitute the “United world”, and fool no one but yourselves.

    Unless, of course, if you’re talking about America’s No. 1 death and infection tolls in the entire world, then, yes, America could only then be considered to be in a “world” of its own. ROTFLMAO!

  31. Timothy Parker
    May 24, 2020

    Do you seriously believe that if Apple and American company gets a Chinese company to put together Apple’s phones that makes the Chinese company the powerful one? China putting together Western designs makes China hired labor That’s it… America’s tech companies like Apple and Intel are the companies that have massive profits while the Chinese factories have almost no profits for putting together American goods… The Chinese economy is almost at the bottom of the value chain where South Korea Japan and America are at the top…China has no innovation no companies who are successful internationally all China does is put together our stuff… If you think that means China built America you’re hilarious… America can have India put together our stuff and China will be left with nothing because the bottom of the value chain is easily replaceable..

  32. Eternalmaster Ofusmedia
    May 24, 2020

    Obviously the vacuous hole between your ears is helplessly stuck in a time warp at least 20 years in the past. Your so-called “advanced degree” has become a backwards liability and learning disability, because many of China’s own tech companies, not including the type that only put together Apple’s phones, have decisively moved up the value chain to the top. Huawei is only one such example. There are countless others that have taken the global lead in innovation by creating Chinese designs and dominating the global market with their creations. That’s why the most recent data show that China’s total patents have surpassed that of America. Furthermore, according to the U.N., China is also the only nation in the entire world that has all types of industrial capacity in every category as defined by the U.N. While murican morons like yourself have your heads helplessly stuck in the sand while living under a rock, China has been surging ahead, leaving you learning-disabled ignoramuses in the dust. ROTFLMAO!

  33. Timothy Parker
    May 24, 2020

    I will say though you have probably earned at least $5 from all of your $0.50 comments from your government lmao.. unfortunately you Chinese citizens get paid in a week what we do in one day hahaha

  34. CowboyJoe
    May 24, 2020

    You’ve been brainwashed. The US nuked Japan twice and forced them to UNCONDITIONAL surrender. The US saved China from more Nanjing-style massacres. After that China acquired nukes from, you guessed it, stolen American tech. This is a free history lesson you can get on the Internet if your VPN worked worth a damn.

  35. Neil3097
    May 24, 2020

    Media tek released their 7nm chips last year, and it’s one of the few manufacturers who can make 5G SoC so far. Their chips have being used by Oppo, Lenovo and Xiaomi for a long time. Please do your research before saying something so arbitrary.

  36. Eternalmaster Ofusmedia
    May 24, 2020

    Calm down, cowgirl. If the head on your shoulders were worth a damn, you would’ve been capable of educating yourself on the fact that without China having done most of the fighting on the ground in WWII against the most seasoned Japanese forces, then America would have had millions more casualties fighting the best of the Japanese forces by themselves. That number would have been dozens of times worse for America than the “Nanjing Massacre” was for China. If you don’t believe me, then look up what any reputable American historian will tell you, because these are their estimates. If you hadn’t been brainwashed since grade-school Special Ed, maybe, just maybe, you would not have needed me to teach you these lessons which you should have learned long ago.

  37. CowboyJoe
    May 25, 2020

    pray do tell what Chinese designs are you referring to?

  38. Eternalmaster Ofusmedia
    May 25, 2020

    Instead of praying to me, explain the context that you’re referring to.

  39. CowboyJoe
    May 25, 2020

    Your grasp of the English language is lacking. Let me rephrase. You mentioned “There are countless others that have taken the global lead in innovation by creating Chinese designs and dominating the global market with their creations.”

    Which designs? And what countless others?

    I will give you credit for not wasting half your post on a rambling, canned insult. Kudos!

  40. Eternalmaster Ofusmedia
    May 25, 2020

    Chill your tits. What’s with your snarky, passive-aggressive, butthurt attitude? Don’t be so defensive and uptight. I will give you another chance to compose yourself and talk in a non-pretentious manner. You’re welcome!

  41. CowboyJoe
    May 25, 2020

    I think this conversation has exceeded your education level. Even your rehashed insults are not insulting anymore.

    You haven’t replied with anything of substance in your last postings so either your VPN or your Chinese minders won’t let you access information to formulate a rebuttal with legs.

    We’re done chatting. Stay safe and try not to catch COVID19. China needs all the good commies like yourself to quell any thoughts of free expression from Hong Kong and Taiwan.

  42. Eternalmaster Ofusmedia
    May 25, 2020

    I know that the lessons I’ve taught you have exceeded your level of limited reading comprehension, though you tried to desperately deflect from your failure to grasp their meaning.

    I only had to point out how your words have reflected what you are, and your insecurity did the rest to make you always feel “insulted”.

    Even your rehashed mumble jumble about VPN, Chinese minders, and commies…etc. show that your thoughts of “free expression” aren’t worth a damn because brainwashed capie simpletons like yourself are not capable of educated expression.

    Rather than disingenuously whining and moaning about not being fed enough “substance” by me, you need to learn to comprehend that I require you to be capable of behaving in a non-defensive attitude and showing a genuine intent to learn, first.

    I realize that my demand has set the bar too high for you to reach, because your American handlers had never taught you how to be an upstanding man carrying yourself on two legs before they ever let you out of your cage. But that’s only your problem.

    Take care not to catch the coronavirus because you’re a lot closer to the grave in America than I do. After all, America needs all the good capie slaves like yourself to quell any thoughts of uprising against the oppressive racist American regime in all 50 states to take power back into the hands of the people.

    ROTFLMAO!