Huawei’s chairman Guo Ping has reacted to the US government’s tight export controls aimed at preventing the Chinese tech company from acquiring the necessary chip, after reports that its largest supplier has already Disconnected “We haven’t figured it out yet,” Guo said on stage at Huawei’s annual analyst summit. “The US government is still determined to attack Huawei, but what in the world will it do?”
“In its relentless pursuit to tighten its stranglehold on our company, the US government has decided to proceed and completely ignore the concerns of many companies and industry associations,” Huawei said in an official statement. This decision was arbitrary and pernicious and threatened to undermine the entire industry worldwide. This new rule will impact the expansion, maintenance, and continuous operations of networks worth hundreds of billions of dollars that we have rolled out in more than 170 countries.”
“We expect that our business will inevitably be affected,” Huawei’s statement continues. “We will try all we can to seek a solution.”
Nikkei reported earlier today that TSMC had gone to block Huawei’s new orders following a US government announced last week. These rules are specifically designed to target Huawei and its chip subsidiary, Hello Silicon, for any equipment that requires a license from manufacturers that use US technology or equipment. According to Reuters, TSMC did not deny the reports but called them “pure rumor market rumors.”
Huawei has, in the past, suggested that it could turn the chip supply into Samsung. The company is also recently exploring domestic chip production through China’s Semiconductor Manufacturing International Corporation (SMIC), which has just received an investment of 2. 2.2 billion from the Chinese government.
SMIC, however, is relatively relative to TSMC. There is little competition, and it will take more time to meet the demands of Huawei. Last week, SMIC began mass production of a high-silicon Crane 710A processor at its 14nm node, but this year TSMC hopes to move to a more innovative 5Nm process. Even the original Karen 710 TSMC produced at 12nm, and it was a mid-range chip in 2018.
“This decision by the US government does not just affect Huawei. It will have a serious impact on a wide number of global industries,” according to a Huawei statement. “In the long run, this will damage the trust and collaboration within the global semiconductor industry, which many industries depend on, increasing conflict and loss within these industries. The US is leveraging its technological strengths to crush companies outside its borders. This will only serve to undermine the international trust companies place in US technology and supply chains. Ultimately, this will harm US interests.”
Richard Yu, CEO of Huawei’s Consumer Division, also spoke out against the US government today. “The so-called reasons for cybersecurity are just an excuse,” he wrote in a VChat post published by Bloomberg. “The key is the threat to America’s technological superiority.”