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posted by martyb on Sunday August 09 2020, @07:41AM   Printer-friendly
from the winning-battles-while-losing-the-war? dept.

Huawei to stop making flagship chipsets as U.S. pressure bites, Chinese media say:

Huawei Technologies Co will stop making its flagship Kirin chipsets next month, financial magazine Caixin said on Saturday, as the impact of U.S. pressure on the Chinese tech giant grows.

U.S. pressure on Huawei's suppliers has made it impossible for the company's HiSilicon chip division to keep making the chipsets, key components for mobile phone, Richard Yu, CEO of Huawei's Consumer Business Unit was quoted as saying at the launch of the company's new Mate 40 handset.

[...] "From Sept. 15 onward, our flagship Kirin processors cannot be produced," Yu said, according to Caixin. "Our AI-powered chips also cannot be processed. This is a huge loss for us."

Huawei's HiSilicon division relies on software from U.S. companies such as Cadence Design Systems Inc or Synopsys Inc to design its chips and it outsources the production to Taiwan Semiconductor Manufacturing Co (TSMC), which uses equipment from U.S. companies.

Also at PhoneArena.

Previously: Arrest of Huawei Executive Causing Discontent Among Chinese Elites
Huawei Soldiers on, Announces Nova 5 and Kirin 810
U.S. Attempting to Restrict TSMC Sales to Huawei
TSMC Dumps Huawei
Huawei on List of 20 Chinese Companies that Pentagon Says are Controlled by People's Liberation Army


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  • (Score: 3, Informative) by Runaway1956 on Sunday August 09 2020, @06:55PM (6 children)

    by Runaway1956 (2926) Subscriber Badge on Sunday August 09 2020, @06:55PM (#1033949) Journal

    I was pretty much with you, right up to the "huge, open market".

    China is NOT an "open market". The whole country runs a protectionist racket intent on dominating the world market. All trade secrets belong to the Party, but the Party need not share any of it's secrets. Intellectual property is not to be respected, unless the Party owns the IP.

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  • (Score: 4, Informative) by PartTimeZombie on Sunday August 09 2020, @10:57PM (5 children)

    by PartTimeZombie (4827) on Sunday August 09 2020, @10:57PM (#1034060)

    I am not sure how you factor in the US company I work for then.

    It owns 20 manufacturing sites in China and makes something like $2 Billion in profits from China.

    • (Score: 2) by Runaway1956 on Monday August 10 2020, @01:04AM (4 children)

      by Runaway1956 (2926) Subscriber Badge on Monday August 10 2020, @01:04AM (#1034117) Journal

      Every "secret" your company owns, is co-owned by the Party. Not directly, of course, but indirectly. Your company doesn't own 20 manufacturing sites in China, it co-owns those sites with sister Chinese companies. Your company can be booted from China entirely, and the party, working with those sister companies, will keep right on keeping on.

      • (Score: 3, Insightful) by PartTimeZombie on Monday August 10 2020, @01:48AM (3 children)

        by PartTimeZombie (4827) on Monday August 10 2020, @01:48AM (#1034134)

        I'm sure you're right, but those are the terms the company agreed to when they set up in China, and presumably they thought those terms were reasonable at the time.

        • (Score: 2) by Runaway1956 on Monday August 10 2020, @02:27AM (2 children)

          by Runaway1956 (2926) Subscriber Badge on Monday August 10 2020, @02:27AM (#1034146) Journal

          Key words, "at the time". The whole world thought that China was going to be easy to exploit, so they agreed to very unreasonable terms. It turns out that the Chinese were a lot smarter than our people thought they were!

          • (Score: 2) by PartTimeZombie on Monday August 10 2020, @02:54AM (1 child)

            by PartTimeZombie (4827) on Monday August 10 2020, @02:54AM (#1034161)

            I don't think that's true.

            I don't think anyone would be stupid enough to agree to terms on the basis of "they don't really mean it" or "they say they're going to take all our stuff, but I don't really think they will".

            • (Score: 2) by corey on Monday August 10 2020, @12:16PM

              by corey (2202) on Monday August 10 2020, @12:16PM (#1034290)

              Interesting that your company is doing tear downs.

              From what I understand on the whole doing business in China thing, is that you sign in to the Party's terms or you don't sell to a billion people or the world's second biggest economy. It's that sight of treasure that makes companies sign virtually anything. I would take care assuming the terms were good for your company (not that they would have even cared).