Huawei places a new $700 million order to TSMC, but US actions stop it

18 May 2020
Companies using US equipment would require license to sell to Huawei.

Sort by:

[deleted post]"not buy products whose parent companies are from countries under such regimes."
Around 90% of the stuff you have is made in China.

but other company also using machine and usa base technology

  • Anonymous

This means that huawei has orders from other company too. Huawei should not rely on companies connected to US.

  • Anonymous

sandro, 19 May 2020Responding with "CCP" to every argument is nothing short of... morePutting in CCP to a conversation is dumb?
Better thinking people would think of much more than what kids think and what (maybe not brainwashed, but got information of outside world censored from nation) kind people think.
The reason huawei survived is because US government did not want to. If they really want to, they do everything at once to eliminate Huawei. Why are they giving trade permission, but not ban everything at once?
CCP helped Huawei by dirty skills like infiltrating the Internet, tell citizens to purchase only from Huawei. As you would've known, they censored negative news about huawei on their Internet, literally all of them, imagine Facebook, twitter, Google censoring content that posses negetively specifically to a certain company.

If you look at Huawei overseas market, you know they are dead. However the largest market is still China. They have the upper hand of China, as I said, that's how they survive. Thanks, China.

cheapsk8, 19 May 2020Well it would be hard to admit wrongdoing if you didn't do ... moreFrom my armchair, I could see Huawei staying for long.
So I don't agree, that the people in administration also didn't see that... especially since they're privy to much more details than we are.

The intelligence community are quite active, but they are not very public. Hence, why there is a lot of chatter about Huawei's equipment in Europe outside the influence of USA, so something is certainly amiss. They're just not releasing details, which they always justify as for "security reasons".

If you're accused of wrongdoing, and didn't do it... it's actually easy to admit, just be transparent of the matter. Say that to ensure trust, you will take measures which can be observed and reported, etc etc. Huawei has not chosen this.

...as an example, several years ago there was an abattoir in my area that was accused of selling tainted meat to a small butcher. So the owners reacted quickly, and made a public statement. Few days later they paid money for an independent company, they came in and did an inspection, and reported if there were any bacterial outbreaks, in which areas, and which stock were affected. Turned out there was a bacterial there, but it wasn't too much, and it didn't affect any of the produce that was sold to the butcher. The area was decontaminated, and the abattoir started a new hygiene system. Let's just say, the management were professional, sincere, and acted diligently... and the local business has been successful for a long time now.

Kangal, 19 May 2020No, you misunderstood my comment. The technology was innov... moreWell it would be hard to admit wrongdoing if you didn't do any, wouldn't it? There's this expression, "You picked a fight with the wrong guy". This administration thought Huawei would roll over with the Google ban last year. Little did they know that Huawei will be around long after they're gone.

cheapsk8, 19 May 2020You're conflating the government and private business entit... moreNo, you misunderstood my comment.
The technology was innovated in the USA, with the taxpayer money and commercial success there. It was not invented by the USA government. It was invented by (experts, researchers, etc etc) the companies in the USA. Under normal circumstance, Huawei would have to buy the goods and/or services they require, or go under some licensing terms.

The USA government is simply putting a ban on USA making business with Huawei. That means no new goods to sell. No new services to provide. No new licenses to agree. So because of that Huawei cannot get Google Services (Mountain View, California), cannot buy new TSMC (FinFet, Berkeley) silicon wafers, cannot license technologies like the Cortex A77 (Austin, Texas).

What happened to Huawei, was what also happened to ZTE.
However, with the ZTE fiasco, they apologised, payed a hefty fine (bribe?), and under the leadership of USA fired/changed the management of the ZTE company. And it's hurt the company immensely, but its slowly bouncing back.

With Huawei, the reaction was very different.
Huawei refused any wrong-doing, did not apologise, they antagonised the USA, tried suing them, called USA's bluff (after seeing how ZTE deal turned out), and basically made a stupid risk. Their gamble did not pay off. Now they find themselves at the short-end of the stick, and calling it unfair and are asking for mercy.

I believe USA would let business be business. They really don't care about Huawei making money, just as long as the company puts things in place to prevent backdoors/spying on hardware, and that the company officially cuts ties from the CCP. However, the CCP and by-extension Huawei is refusing for such resolution to take place. So now its just a game of wits.

  • sandro

Truth Sayer, 18 May 2020I'm from Saudi Arabia and I do support Trump's crusade agai... moreSpeaks a guy from Saudi Arabia!

  • sandro

Anonymous, 18 May 2020Nope, just stopping the spread of the evil CCP influence to... moreResponding with "CCP" to every argument is nothing short of being brainwashed. There is no national security risk and there is no spying. Otherwise the US government wouldn't have shied off of showing evidence if they had any. The US has reached stagnation in innovation and the government needed to take steps to curb the Chinese unstoppable progress. Period.

  • Anonymous

TSMC is main vendor for Apple and snapdragon soc which are both American owned products what on earth you think Mr.Trump is going to let Huawei to make a deal with a Taiwanese company.guess Huawei should go for in house production otherwise they will end up with mediatek for now which will put them into another league hope not..

Kangal, 18 May 2020There's a lot of technology in modern chips which came from... moreYou're conflating the government and private business entities - intellectual properties belong to the latter, not the former. It's not what Google, Microsoft, Qualcomm and Intel "see fit" that their business is crippled by decree, for political reasons.

That said, you correctly laid out that this is not USA vs Huawei but USA vs China, meaning that what happens to Huawei today can easily apply to the likes of Xiaomi, Vivo, Oppo etc. tomorrow: If you rely on US tech, you're vulnerable. Can you guess what the outcome will be?

Arvind7955, 18 May 2020It is good. Trump is doing very good for USA and for the wh... moreyou are so smart to figure that out. we all praise you.

  • Anonymous

Anonymous, 18 May 2020Wrong, ARM is now Japan (Acquired by Softbank).True that.

[deleted post]Agreed, Huawei wouldn't even dream to have the same amount of data Google, Facebook or even Amazon collect every day, without speaking of the freaking NSA ofcourse. This is a trade war and each country is defending it's interest, but it seems the Chinese are clueless about how to retaliate without causing much damage, they've shown a lot of weakness since the conflict escalated.

  • Anonymous

After a year can they place an order? It is a ban for only 1 year

  • Anonymous

Anonymous, 18 May 2020ARM yeah UK based, but technology based in US.No it not, get your fact right.

  • Anonymous

Anonymous, 18 May 2020ARM is UK not US. The machines to make the chips are from t... moreARM yeah UK based, but technology based in US.

There's a lot of technology in modern chips which came from USA research and USA funding. Have they gained profit from it? Sure. But it is their innovation. So it is their right to block Huawei if they see fit. Not that I am saying it is right.

If Huawei wants to compete, and they're not playing fair/satisfactorily... well, they become ostracised. If Huawei wants to compete, they can start developing their own computer architecture, their own silicon fabrication, and their own software stack. Heck, half the tools for the job are out there: acquire the failing/bankrupt GlobalFoundaries for the silicon, acquire the failing/open RISC V architecture, and acquire the failing/niche Jolla SailfishOS. The three pieces to the puzzle right there. It's not going to be cheap. And overall, you're going to be far less advanced than the current options. But hey, they say hard-work pays off right? Nevertheless, the effect of this ban on Kirin chipsets does not matter. Really. That's just a small thing. Even Huawei losing Google Services, or losing AndroidOS is not that big of a deal. HongmengOS is just bad anyways. The effect of this ban on the 5G towers.... that's what truly matters. China's CCP government wants to spy on other nations, and the USA doesn't want that. That makes USA the lesser of two evils, but make no mistake, the USA is doing it for selfish reasons. The USA wants to preserve the current arrangement of cooperation with outside governments/nations for intelligence, which is close to spying as well. Let's say they're paranoid about security since 2001.

As an outsider with no affiliation to either, what do I think?
I think there's a lot of evil in both the CCP and USA. I also think there's not much I can do about it. They will do their politics. They will do their businesses. And at the end, China will still end up getting their profits. Whilst the USA will still end up preserving the current circumstances of spying. All of us here on the comments section are ants in comparison to these behemoths. Neither is in your party. Chinese citizens, the CCP is not your friend in this matter. American citizens, the USA is not your friend in this matter. When Godzilla and King Kong fight, you simply have to move out of the way.

The best solution for your personal privacy is to use a Modded Android Phone, stay off social media, and exercise common sense to your online passwords/browsing/downloading activities. If you are lazy or tech-illiterate, an iPhone is the next alternative. Social Media, Stock Android and/or Google's ecosystem is tracking you!

  • Anonymous

[deleted post]Can't agree with you more, mate

  • Anonymous

Anonymous, 18 May 2020ARM is UK not US. The machines to make the chips are from t... moreWrong, ARM is now Japan (Acquired by Softbank).