Yesterday, perhaps the darkest era of existence for Huawei Technologies began, with the enactment of trade restrictive rules promulgated by the U.S. Department of Commerce in mid-August that virtually cut off the Chinese tech giant from its suppliers and technology partners, which are virtually any U.S. use technology to carry out their main activity. As a result, Huawei was forced to cease production of Kirin processors, among other things, as TSMC in Taiwan did not undertake to continue to make contract production for the company, citing legal compliance. Taking advantage of its decades of technological dominance in chip manufacturing design, the U.S. has also cut Huawei from Chinese partners.
At least that is what a report by the Beijing business newspaper Beijing News, China's only processor manufacturer, Semiconductor Manufacturing International Corporation (SMIC) and
According to the Chinese portal, due to the trade embargo, SMIC will not be able to supply processors to Huawei from September 15, as the company uses Applied Materials' machines, among other things, and uses chip research from Lam Research. A large part of SMIC's orders are or have been provided by Huawei, so some analysts estimate that the company has tied up around 20% of its production capacity.
Under current regulations, the U.S. Department of Commerce can now apply for and obtain exemptions from trade restrictions that have now entered into force on a case-by-case basis – SMIC has confirmed to Beijing News that it has submitted the application to the appropriate ministry, making it absurd. it emerged that a Chinese company was asking the U.S. government for permission to trade with another Chinese company. For now, however, the company may be happy if it doesn’t put the United States on the blacklist that Huawei topped last May and kicked off the company’s really serious calvary – a virtually fatal blow to China’s largest chip maker.
In addition to SMIC, a number of US and Asian manufacturers and partner companies have applied for exemptions from the restrictions, including TSMC, Qualcomm, MediaTek, SK Hynix or Samsung. The U.S. Department of Commerce has so far not evaluated any license applications positively.
Gellert is Technology Editor at Counting News Media and contributor at other major tech publications. Her interests includes testing new gadgets and reading.