U.S. strikes at a Huawei prize: chip juggernaut HiSilicon

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The latest U.S. government action against China’s Huawei takes direct aim the company’s HiSilicon chip division–a business that in a few short years has become central to China’s ambitions in semiconductor technology but will now lose access to tools that are central to its success.

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SHANGHAI (Reuters) – The latest U.S. government action against China’s Huawei takes direct aim the company’s HiSilicon chip division—a business that in a few short years has become central to China’s ambitions in semiconductor technology but will now lose access to tools that are central to its success.

FILE PHOTO: A Kunpeng 920 chip designed by Huawei’s Hisilicon subsidiary bearing the internal name of Hi1620 is on display during a launch event at the Huawei’s headquarters in Shenzhen, Guangdong province, China January 7, 2019. REUTERS/Sijia Jiang/File Photo

Doug Fuller of the Chinese University of Hong Kong said Huawei had a few options. It could slip around the rule by having suppliers ship directly to Huawei customers, though the U.S. officials said they would be vigilant about such workarounds.

Huawei and the Chinese government could re-double efforts to build production capabilities that did not require U.S. tools, by investing in nascent Chinese competitors and buying from Japanese and Korean firms, even if that required quality sacrifices.

Or Huawei could turn away from HiSilicon and revert to buying from overseas suppliers—just not American ones. “There’s talk of Huawei just turning to Samsung processors,” for its smartphone, said Fuller.

Reporting by Josh Horwitz in Shanghai; Additional reporting by David Kirton in Shenzhen and Stephen Nellis in San Francisco; Editing by Jonathan Weber and Lisa Shumaker


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Author:

The latest U.S. government action against China’s Huawei takes direct aim the company’s HiSilicon chip division–a business that in a few short years has become central to China’s ambitions in semiconductor technology but will now lose access to tools that are central to its success.

Source: {authorlink}

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