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posted by Fnord666 on Sunday March 29 2020, @03:55PM   Printer-friendly
from the Free-market dept.

US poised to restrict TSMC's chip sales to China's Huawei

The United States has been aiming to curb the supply of chips sold by contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) to China's Huawei Technologies Co. through planned heavier sanctions against the Chinese telecom equipment giant, according to a Reuters report.

The report said while tensions between Washington and Beijing have been escalating with both sides blaming each other for spreading the novel coronavirus disease (COVID-19), the Trump administration has a plan to introduce new measures to further restrict global chip sales to Huawei.

Under the proposed new rules, the report, dated Thursday (March 26) in Washington, said foreign companies that use U.S. production equipment to roll out their chips would be required to obtain a U.S. license ahead of sales of certain chips to Huawei, which was blacklisted last year.

Boon for Apple, AMD, Nvidia, etc. or a disaster in the making?

Also at Tom's Hardware.

See also:
AMD is set to become TSMC's biggest 7nm customer in 2020
Report: TSMC's Reducing Its Reliance on Huawei Amid US Government Scrutiny

Related:
AMD Says TSMC Can Meet Epyc Demand; Launches New, Higher-Clocked 64-Core CPU
How China Plans to Lead the Computer Chip Industry


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  • (Score: 5, Insightful) by BsAtHome on Sunday March 29 2020, @04:19PM (1 child)

    by BsAtHome (889) on Sunday March 29 2020, @04:19PM (#976955)

    Retrospective limitation om equipment sold from US sources. That will make the industry reconsider buying any US equipment in the future. Today it may be chip-production stuff. Tomorrow it will be a hammer. Imagine a contract saying, you can buy this hammer, but if you need to hammer in a Chinese nail, then you need an additional license.

    In effect, it will isolate the US market from the rest of the world. The liabilities stemming from US equipment will potentially become too expensive. It is a good way to ensure that other countries will create their own manufacturing equipment to protect their production lines. Then, after some time, the US can jump as high as they'd like and nobody will be listening anymore. What a way to shoot yourself in both feet and take your legs off too.

    • (Score: 2) by DannyB on Monday March 30 2020, @03:29PM

      by DannyB (5839) Subscriber Badge on Monday March 30 2020, @03:29PM (#977237) Journal

      Nobody in the US can imagine that the other 96 % of the world population might decide to shun the US.

      Nothing to see hear.

      Move along. Move along.

      --
      When you GOTO a dark place, always PEEK before you POKE.
  • (Score: 1) by khallow on Sunday March 29 2020, @04:20PM (2 children)

    by khallow (3766) Subscriber Badge on Sunday March 29 2020, @04:20PM (#976956) Journal

    Boon for Apple, AMD, Nvidia, etc. or a disaster in the making?

    Nothing demonstrates the overwhelming power of corporations like these profit-destroying fubars. Enlarging the trade war to penalize businesses in other countries, Cuban-style, is going to mean a lot of lost sales for US businesses like the ones mentioned.

    • (Score: 2, Touché) by Anonymous Coward on Sunday March 29 2020, @04:34PM

      by Anonymous Coward on Sunday March 29 2020, @04:34PM (#976959)

      Coming up next, China figures out how to not-so-violently take over Taiwan.
      Trump takes no responsibility for actions, blames Hillary's email server instead.

    • (Score: 2) by exaeta on Monday March 30 2020, @07:16AM

      by exaeta (6957) on Monday March 30 2020, @07:16AM (#977130) Homepage Journal

      Pretty soon every country in the world will stop doing business with the US. We are on the path to irrelevancy and it's an orange monkey's fault. We shouldn't be sanctioning other countries because they are doing better than us. It's hurt ego, unproductive, and shows the monkey's alliegance is with US corporations (who benefit from the trade war) not US citizens/consumers (who don't benefit from trade war).

      To sanction things that happen in other countries is reprehensible and it shows that the US is worse than both China and Russia. I really should get my Irish citizenship and expatriate from this shithole.

      --
      The Government is a Bird
  • (Score: 5, Insightful) by Runaway1956 on Sunday March 29 2020, @04:49PM (7 children)

    by Runaway1956 (2926) Subscriber Badge on Sunday March 29 2020, @04:49PM (#976961) Journal

    I can't see that we're choosing battles wisely, if we're choosing them at all. If it's Russian, it's evil, if it's Chinese, it's evil, if it's evil, kill it.

    FFS, I'm an anti-communist, dead set against most all socialism. But, even so, here we are in the world we have created. China ain't going away, nor is Huawei. We really ought to do one of two things with Huawei - work with them, or ignore them. Declaring war on them seems pretty damned stupid to me. Doubly so, when we realize that the corporation is backed by the largest nation on earth. And, for what? So our corporations can profit?

    Of course, looking back over our history in the western hemisphere, what more can be expected. We created and toppled governments pretty regularly for the sake of corporate profit. A term was coined for those nations - "banana republics".

    We will most definitely find that China isn't just another banana republic that we can slap down at will. The sleeping giant has been awakened, and it ain't going to sleep again real soon.

    --
    “I have become friends with many school shooters” - Tampon Tim Walz
    • (Score: 2, Insightful) by takyon on Sunday March 29 2020, @05:36PM (5 children)

      by takyon (881) <reversethis-{gro ... s} {ta} {noykat}> on Sunday March 29 2020, @05:36PM (#976972) Journal

      China Is Avoiding Blame by Trolling the World [archive.is]

      Yes, Blame China for the Virus [foreignpolicy.com]

      Stacks of Urns in Wuhan Prompt New Questions of Virus’s Toll [bloomberg.com]

      China theft of technology is biggest law enforcement threat to US, FBI says [theguardian.com]

      Relations with Russia should be normalized if possible. China should be completely shunned, and steps should be taken to decouple the U.S. and Chinese economies.

      Coronavirus outbreak will speed up US-China ‘decoupling’ more than the trade war, Milken Institute analyst says [cnbc.com]

      --
      [SIG] 10/28/2017: Soylent Upgrade v14 [soylentnews.org]
      • (Score: -1, Troll) by Anonymous Coward on Sunday March 29 2020, @07:27PM (2 children)

        by Anonymous Coward on Sunday March 29 2020, @07:27PM (#977001)

        Only dumb people think that this and similar viruses couldn't possibly happen in any slaughterhouse or abattoir anywhere in the world. People flu mixing with animal flu created a new flu. Dumb people, following their dumb politicians, will try to blame a specific country when it could happen anywhere and then blame other people for not doing enough to stop it or doing too much to stop it. Thankfully most mutated viruses aren't viable.

      • (Score: 2) by PartTimeZombie on Sunday March 29 2020, @10:35PM (1 child)

        by PartTimeZombie (4827) on Sunday March 29 2020, @10:35PM (#977042)

        I am quite sure China is lying about the extent of the Covid virus, because that is how they work.

        Western big business got exactly what they deserved when they did their deal with China. They wanted cheap labour and a whole new market of a billion people, and they didn't care what they gave away to get those things.

        They should stop whinging about it.

        • (Score: 1, Interesting) by Anonymous Coward on Monday March 30 2020, @12:30PM

          by Anonymous Coward on Monday March 30 2020, @12:30PM (#977175)

          An important consideration is this. Are they lying more or less than the people who tell us that they are lying?

    • (Score: 0) by Anonymous Coward on Sunday March 29 2020, @11:41PM

      by Anonymous Coward on Sunday March 29 2020, @11:41PM (#977059)

      I dunno, the goal is probably good but the approach is probably not right, it ain't too late to walk down a different path but it takes time. There's plenty of cheap labor to be had in Asia and Africa - it is a better model for cheap labor as it is distributed across multiple countries so yer eggs aren't mostly in one basket like the situation is with China at the moment.

      Trump seems to just want to attack China head on without looking at the alternatives to achieve the same outcome. I firmly believe China is to blame for this covid mess, and now is a good opportunity as any to rally the world against them - they have to pay.

  • (Score: 3, Insightful) by Rosco P. Coltrane on Sunday March 29 2020, @06:14PM (3 children)

    by Rosco P. Coltrane (4757) on Sunday March 29 2020, @06:14PM (#976982)

    and slowly isolating itself on the world stage and sliding into irrelevance.

    • (Score: -1, Flamebait) by Anonymous Coward on Sunday March 29 2020, @06:36PM

      by Anonymous Coward on Sunday March 29 2020, @06:36PM (#976986)

      ok pooh bear

    • (Score: 2) by DannyB on Monday March 30 2020, @03:34PM (1 child)

      by DannyB (5839) Subscriber Badge on Monday March 30 2020, @03:34PM (#977240) Journal

      It's okay. The other 96 % of the world population won't think of the US as a bully run by a madman.

      --
      When you GOTO a dark place, always PEEK before you POKE.
      • (Score: 0) by Anonymous Coward on Monday March 30 2020, @07:18PM

        by Anonymous Coward on Monday March 30 2020, @07:18PM (#977320)

        I have always enjoyed the crazy american presidents, but this Trump dude is a bit over the top. I much prefer Bush, he was such an adorable idiot. My own politicians are entertaining idiots too, but "over there" it's always 200% EXTREME TO THE MAX.

  • (Score: 2) by Mojibake Tengu on Sunday March 29 2020, @08:12PM (2 children)

    by Mojibake Tengu (8598) on Sunday March 29 2020, @08:12PM (#977016) Journal

    If TSMC uses an U.S. technology for critical production operation, why not Intel, to be competitive at least?
    Fact: Intel has no adequate technology.
    Therefore, it is very probable TSMC does not actually use U.S. technology for critical production operation.
    Another thing is sure: if such restriction ever succeeeds, Huawei will begin to fab their own chips sooner or later. Is this what TSMC wishes to happen, in their long term strategy? Very probably, not.

    That opens some new problems:
    What prevents TSMC expanding to mainland to get a jurisdiction shelter?
    Whomever actually sits on said technology, what prevents a transfer of it directly to Huawei? Money is powerfull...

    --
    Rust programming language offends both my Intelligence and my Spirit.
    • (Score: 2) by HiThere on Sunday March 29 2020, @10:19PM

      by HiThere (866) on Sunday March 29 2020, @10:19PM (#977038) Journal

      Well, *someone* friendly to China with a raft of money behind them will begin fabbing chips that Chinese companies can use. The names and companies are temporary, and Huawei may not have any control (though they'll have a lot of input).

      --
      Javascript is what you use to allow unknown third parties to run software you have no idea about on your computer.
    • (Score: 2) by exaeta on Monday March 30 2020, @02:15PM

      by exaeta (6957) on Monday March 30 2020, @02:15PM (#977207) Homepage Journal
      What if TSMC just ignores the sanction? Or better yet, TSMC should play hardball with the US, refuse to sell chips to United States companies until the sanction is lifted.
      --
      The Government is a Bird
  • (Score: 2) by exaeta on Monday March 30 2020, @07:09AM (5 children)

    by exaeta (6957) on Monday March 30 2020, @07:09AM (#977127) Homepage Journal
    Maybe we *do* need an international trade court, to put the US back where it belongs. Thoughts?
    --
    The Government is a Bird
    • (Score: 2) by Runaway1956 on Monday March 30 2020, @10:09AM (2 children)

      by Runaway1956 (2926) Subscriber Badge on Monday March 30 2020, @10:09AM (#977159) Journal

      Yeah, thoughts.

      Who runs this court?

      Where does the court think that the US "belongs"?

      There are reasons, both legitimate and illegitimate, why the US won't submit to the jurisdiction of various international courts. The US has never surrendered any military personnel accused of war crimes to an international court, or to any national court outside of the US. We won't submit to any trade court, unless it is controlled by the US, and so heavily stacked that it will always rule in our favor. It certainly wouldn't do to have a court that might rule against us, even on rare occasions.

      --
      “I have become friends with many school shooters” - Tampon Tim Walz
      • (Score: 3, Interesting) by exaeta on Monday March 30 2020, @02:10PM (1 child)

        by exaeta (6957) on Monday March 30 2020, @02:10PM (#977204) Homepage Journal
        What about a simple idea: You can't sanction countries for things they do in a different country that allows that behavior. No country has authority to regulate simply because a US object was used. Countries that bow to such sanctions are understandable, only because the U.S.A. is the schoolyard bully. But the U.S. should be sanctioned by China and Russia and the EU for this behavior. For that matter, EU needs to grow a spine and sanction the US, they are the only ones in a position to stop this bullshit.
        --
        The Government is a Bird
        • (Score: 2) by Runaway1956 on Monday March 30 2020, @02:28PM

          by Runaway1956 (2926) Subscriber Badge on Monday March 30 2020, @02:28PM (#977209) Journal

          Agreed.

          Maybe if the world collectively flipped the bird at Washington, D.C, the assholes in the swamp wouldn't be so hard to live with. Of course, with Israel and the Five Eyes backing Washington, the world is hesitant to do that.

          --
          “I have become friends with many school shooters” - Tampon Tim Walz
    • (Score: 1) by r_a_trip on Monday March 30 2020, @10:43AM (1 child)

      by r_a_trip (5276) on Monday March 30 2020, @10:43AM (#977163)

      Not necessary. Oil is on the way out. With that, the dollar is losing a lot of clout. Energy production is increasingly local. Influence is already waning. Production is located in China, for better or worse. These new shenanigans will only make sure that US technology will lose its place in critical infrastructure. There is no need for an international trade court. Market forces will take care of this automatically.

      • (Score: 2) by exaeta on Monday March 30 2020, @02:07PM

        by exaeta (6957) on Monday March 30 2020, @02:07PM (#977203) Homepage Journal
        True but I'd rather they stop the bullshit now rather than in 15 years.
        --
        The Government is a Bird
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