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U.S. strikes at Huawei with strict export rules, Huawei in uncertainty

U.S. strikes at Huawei with strict export rules, Huawei in uncertainty
U.S. strikes at Huawei with strict export rules, Huawei in uncertainty

The US-China Trade has seen constant fluctuations in the regime of  President Donald Trump. Reportedly, the Department of Commerce has recently made announcements about banning Huawei from using U.S. hardware and software in specific semiconductor processes. This comes as a result of the U.S. trying to limit the Chinese manufacturer’s prowess of gaining more market traction in the nation and the western world.

 

The Chinese company has opposed this legislation and is claiming that this decision would also inevitably impact other Chinese manufacturers. Reports also claim that Taiwanese Semiconductor Manufacturing Company (TSMC), the world’s largest contract semiconductor firm that powers many of Huawei’s high-end phones, has apparently stopped taking new orders from Huawei. Huawei has not commented on the same while TSMC declared it to be a rumor. However, TSMC is also seemingly attempting to strengthen its ties with the U.S. with the construction of an advanced chip factory in Arizona, worth $12 billion.

At the Monday summit, Huawei said it had doubled its investment in overseas developers in an effort to lure them toward its operating system. Approximately 1.4 million developers joined Huawei Mobile Services or HMS, a 150% jump from 2019. In comparison, iOS counted 20 million registered developers in 2018, who collectively made revenues of around $100 billion. Presently, Huawei faces the question of how much money their ecosystem can generate from app makers.

It has partnered with search engine Qwant, news app News UK, as well as navigation services Here and TomTom, in its quest to find suitable alternatives to Google's app suite in Europe.

Regardless of the ultimate outcome, Huawei officials claim that this barrier could lead to a decline for the entire semiconductor industry and this move has been claimed as anti-competitive, signifying how the US is leveraging its technological strengths by exploiting companies across its border.

 

SOURCES:https://techcrunch.com/2020/05/18/huawei-uncertainties-new-us-chip-rules-tsmc/

About the author

Sunil Jha

Sunil Jha has been a part of the content industry for close to two years. Having previously worked as a voice over artist and sportswriter, he now focuses on writing articles for newsorigins.com, across a slew of topics, ranging from technology to trade and finance. With a business-oriented educational background, Sunil brings forth the expertise of deep-dive research and a strategic approach in his write ups.