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WSJ: Qualcomm Asks US Government to Let it Sell Chips to Huawei (engadget.com) 38

"The Wall Street Journal said it had obtained a Qualcomm presentation lobbying the U.S. government to remove restrictions and let it sell Snapdragon processors to Huawei," reports Engadget: The ban won't prevent Huawei from obtaining necessary parts and could just drive "billions of dollars" of U.S. sales to foreign chip makers like MediaTek and Samsung, Qualcomm reportedly said — lifting the chip ban would theoretically help American companies stay competitive.

There could be a "rapid shift in 5G chipset market share" if Qualcomm is restricted while its foreign rivals aren't, Qualcomm said.

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WSJ: Qualcomm Asks US Government to Let it Sell Chips to Huawei

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  • Why ban exports? (Score:5, Insightful)

    by djinn6 ( 1868030 ) on Sunday August 09, 2020 @04:57PM (#60383791)

    I don't understand. This is just hurting American businesses. Over time they'll develop competing technologies and then we would be in an even deeper hole in terms of the trade imbalance.

    I can see restricting exports in times of war, since that can delay their military efforts, but doing it during peace time seems pointless.

    • Of course not, because like during the crypto wars nobody in the whole world is capable of developing a product without the US selling it to them, so banning exports will rapidly destroy all Chinese companies
      • by bogaboga ( 793279 ) on Sunday August 09, 2020 @06:39PM (#60384003)

        Dude, the last time USA restricted technology transfers, it was rocket technology transfer to China.

        Guess what; China developed its own [some say with Russia's help], and is now 100% independent.

        Huawei or other entities in China will be Qualcomm's competitor not very long from now. I think Trump has made a big mistake. Just wait.

        • Well, let's keep the export ban, and let Qualcomm go build a plant in China. Then we'll see how that works for Qualcomm.

          • Re: (Score:3, Informative)

            Qualcomm has no plants. They're a fabless semiconductor company; they just do design. Global Foundries makes most of Qualcomm's chips for them and some at TSMC, which means most of their chips are made in Singapore and Taiwan.
        • by rtb61 ( 674572 )

          Smells more like a scam, I would not trust those chip sets in the least. You know, you can't have them and then grudgingly they let you have them because they wanted you to have them all the time because they are backdoored and they did not want you to check so they made it 'seem' really hard to get.

          Interesting thing about patent law, you deny access to the patent, do not even try to sell, just use it to prevent access, then by patent law, you can be forced to sell of be forced to abandon the patent. So any

          • by XXongo ( 3986865 )

            Interesting thing about patent law, you deny access to the patent, do not even try to sell, just use it to prevent access, then by patent law, you can be forced to sell of be forced to abandon the patent.

            Citation needed.

    • It's not the chips, but tax fee licensing revenues. QualComm used to sell the chips for X dollars and say 10% of finished product price. It may be more, it may be less. Juicy tax fee royalties, with the ticket being clipped as it washes through various international companies set up to drive taxation to about nothing. The Chinese also get a binary blob of modem driver code- who knows what is inside that! Now the dumb IRS is probably not aware of the real situation, but money transfers and back to back was
    • Re: (Score:3, Interesting)

      by AmiMoJo ( 196126 )

      China is already well on its way to replacing American technologies because it saw this coming and saw what the NSA was up to thanks to Snowden. China has competitive ARM designs and is progressing fast with x86 too (licenced from AMD). Software too.

      All Trump has done is accelerate the process. I wonder if he really thought they would just come begging for some American chips.

      • by HiThere ( 15173 )

        AFAIKT, Snowden told the US what others already knew. That's a bit oversimplified, but the US govt. has been whitewashing itself to its own citizens a lot more successfully than to other countries. Our international image has been going downhill since around 1950. US citizens didn't really even start to notice this until around 1960...and even now it's a minority view.

    • Well I understand. The US dominance in production is disappearing but it still has overwhelming military dominance and it is the only one to really project power. Therefore there is a significant front in favor of shifting the competition to what the US excels in , and that is war. If China can be damaged enough then there is a change US can maintain its supremacy for longer.
      There is another track, that of moving production capacity to the US. By itself that is an interesting agenda. It is valuable for a co

      • by cusco ( 717999 )

        what the US excels in , and that is war.

        After 17 years we don't even control the suburbs of Kabul. We're good at buying war toys, but not apparently all that good at using them.

        • The US is very good at destroying things and at making money with war toys.Conquering countries is another , harder task. The US is not in Afghanistan to win.It's there because people are making 100 billion dollars per year with it and it's there because people don't want to be seen as losing.
          The whole idea of bountygate is to avoid withdrawal from Afghanistan. And if you can paint the Russians as enemies on top of it this reinforces another source of gains.

          • by cusco ( 717999 )

            Indeed. I actually think your hundred billion a year is a low estimate, the money laundries like CitiCorp and the NYSE charge 10-15% for their services. They took a major hit when the Taliban shut down 95% of the opium production, they have no intention of letting that happen again.

            • I suspect the opium money is only a fraction of the cost of the military and it doesn't drive the overall policies. Also most of the gains on opium are downstream.
              My estimate of the yearly cost is a bit high compared to this list : https://fas.org/man/eprint/cow... [fas.org]
              The NYTimes last year put 2 trillion on it over 20 years but not all of it can be argued to go to people who have an interest in keeping the war going. I don't think the war vets are trying to lengthen the war

    • Hurting American business is part of the WSJ's mission though. WSJ is owned by Murdoch, right? So, not sure I trust anything it publishes. Wait, I *am* sure I can't trust anything they publish. If there's a story in the WSJ, there's an agenda behind it that involves organized crime & political subterfuge. The old WSJ is long dead.

  • my brain hurts (Score:5, Insightful)

    by Hognoxious ( 631665 ) on Sunday August 09, 2020 @05:00PM (#60383805) Homepage Journal

    It's almost like international trade is actually quite a lot more complicated than some people like to think it is.

  • The main competitor the ban helps is Huawei owned HiSilicon. Why switch to other competitors chips, when you can switch to your own? Currently Huawei only uses HiSilicon in their high end phones, and ships standard Qualcomm designs identical to most of their competitors in the low and mid range. The blockade is a strong incentive for them to grow HiSilicon's range to compete head to head with Qualcomm across the range.

    • by jonwil ( 467024 )

      Except that the US has also banned Huawei and HiSillicon from getting access to the design tools and fabs and things it needs to have to produce all those chips.

      Although I am sure HiSillicon is already looking at how it can get its chips made by the Chinese-run SMIC instead of needing TSMC (who are beholden to the US)

  • by Way, Way Smarter! ( 6878018 ) on Sunday August 09, 2020 @07:13PM (#60384083)

    I saw a talk by an industry CEO. This guy is very data-driven and always gives very informative and insightful talks. He discussed the impact of the USA's ban on American companies selling semiconductors to ZTE.

    The ban was a huge wake-up call to the government of China, which has responded with a huge investment in semiconductor technology: design and manufacturing. In the long term, this will have a huge negative impact on the semiconductor industry outside of China.

    • Re: (Score:2, Interesting)

      by Anonymous Coward

      I saw a talk by an industry CEO. This guy is very data-driven and always gives very informative and insightful talks. He discussed the impact of the USA's ban on American companies selling semiconductors to ZTE.

      The ban was a huge wake-up call to the government of China, which has responded with a huge investment in semiconductor technology: design and manufacturing. In the long term, this will have a huge negative impact on the semiconductor industry outside of China.

      Why will the impact be negative?

      I think it may have a hugely beneficial impact resulting in greater competition, more market choice and better prices.

  • for US govt to ease up on some Hwawei equipment sales in the US since that would be part of the PRC govt concession to let HW do buy these.

I am not an Economist. I am an honest man! -- Paul McCracken

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