New Huawei Chip Factory May Help It Avoid US Trade Ban (engadget.com) 22
In August the U.S. announced restrictions aimed at preventing Huawei from obtaining semiconductors without a special license.
It might work, reports Engadget: Huawei might have a way to avoid some of the worst consequences of tightening U.S. trade restrictions, provided it's willing to be patient. Financial Times sources claim Huawei is planning a dedicated chip factory in Shanghai that would make parts for its core telecom infrastructure business. It would be run by a partner, the city-backed Shanghai IC R&D Center, and would be considered experimental until it's ready to make chips Huawei can use.
The plant would start by making chips based on a very old 45-nanometer process before moving to 28nm chips by late 2021. That would be advanced enough to make chips for smart TVs and Internet of Things devices, the tipsters said. It would reach 20nm by late 2022, when it could make "most" of its 5G cellular hardware.
Between this and a stockpile of chips, Huawei could theoretically keep its telecom hardware business running with relatively little disruption.
It might work, reports Engadget: Huawei might have a way to avoid some of the worst consequences of tightening U.S. trade restrictions, provided it's willing to be patient. Financial Times sources claim Huawei is planning a dedicated chip factory in Shanghai that would make parts for its core telecom infrastructure business. It would be run by a partner, the city-backed Shanghai IC R&D Center, and would be considered experimental until it's ready to make chips Huawei can use.
The plant would start by making chips based on a very old 45-nanometer process before moving to 28nm chips by late 2021. That would be advanced enough to make chips for smart TVs and Internet of Things devices, the tipsters said. It would reach 20nm by late 2022, when it could make "most" of its 5G cellular hardware.
Between this and a stockpile of chips, Huawei could theoretically keep its telecom hardware business running with relatively little disruption.
In other news... (Score:1)
I don't think this will work. (Score:2)
Won't they just ban ICs manufactured in this facility too? I don't think working around trade restrictions is as easy as this. Is it?
Re:I don't think this will work. (Score:5, Informative)
Won't they just ban ICs manufactured in this facility too? I don't think working around trade restrictions is as easy as this. Is it?
I guess this is not about selling phones in the USA, but in the rest of the world. TSMC stopped selling CPUs and Samsung & LG stopped selling screens to Huawei. If Huawei can buy or build their components in China, they at least can continue to sell phones in Asia, Europe, Africa and South America - i.e. they can survive outside of the USA. See this article (in Dutch) [www.vrt.be] about Huawei's flagship phone launch and their troubles in Belgium.
Moore's law is truly dead (Score:2)
The real story is that modern fab processes are not critical for almost anything. Seems like 20nm is good enough for most things if this story is correct.
What this says to me is that not only is EUV push getting more and more epxensive but also the financial returns are likely to decline. The writing is on the wall.
Re: (Score:2)
If you want to make middle of the road gear, I would agree with you. To be on the cutting edge, where most of the margins are, you need to those modern fabs.
Re: Moore's law is truly dead (Score:1)
A quick look around tell you that the margins aren't on the cutting edge. The margins in both percentage terms and total amount are in the mid market.
Re: Moore's law is truly dead (Score:1)
Cutting edge mobile phones and gaming tech.
Even server cpus are currently mostly in the 14nm range.
The USA pushed them to it (Score:3, Insightful)
China will build their own if supply from the US is interfered with.
All the US has done with these sanctions and bans is make China more independent and cost US chipmakers sales to China
Re: (Score:2, Interesting)
Agree fully and the biggest point is: they are to stuppid to see what they are doing.
Taiwan (Score:3)
It is worse than that.
If China ever did try to invade Taiwan, there would be an icy cold war and no trade whatsoever. That would hurt China today. But as they become more self sufficient that pain would be reduced. And we are pushing them to become more self sufficient.
Re: (Score:1)
Q. Why not SMIC? A. Because is publicly listed (Score:5, Informative)
SMIC Is a chinese semiconductor fab/foundry, the biggest in china, and partialy state owned.
They already have a solid 14nm, but is a publicly listed company, and with some important international clients. And that's why SMIC will not accept a commision from Huawei to manufacture ICs, lest it be put in the USoA's black liost, and lose those customers.
therefore, Huawei's slow hard road of financing a fab from almost scratch...
Re: (Score:3)
SMIC Is a chinese semiconductor fab/foundry, the biggest in china, and partialy state owned.
It's not the customers that SMIC is afraid of losing. Its customers are largely Chinese, so those customers are dictated by Beijing and not Washington. Rather, it's losing the American, Dutch, and Japanese suppliers that is worrisome. Losing those suppliers relegates SMIC to also-ran status with no chance of catching up to its competitors.
Re: (Score:1)
Which is why China is pumping huge resources into developing domestic capability to replace those foreigner suppliers within the next few years. In fact if you are working for one of those suppliers, want to get rich quick and don't mind living with some restrictions on your freedoms for a few years you can go get a job over there right now.
use the foxcon WI place !! (Score:2)
use the foxcon WI place !!
Re: (Score:2)
MOD parent UP! Why tie the future of Huawai to Bejing?
The answer to trade sanctions is always not just local manufacture but diversity in your supply chain.
Fake US factory (Score:2)
Re: (Score:2)
Not really. The CON in Foxconn is very appropriate. They never had any intention of actually lighting up more than a shell in Wisconsin. It was all political window dressing.
https://arstechnica.com/tech-p... [arstechnica.com]
They've done this in a number of other places as well.
funny... (Score:3)
Perfect location? (Score:2)