Posted on 12/02/2019 2:15:29 PM PST by SeekAndFind
China was once very dependent on US chips for its phones. The latest Chinese phones have no US parts.
The Wall Street Journal reports Huawei Manages to Make Smartphones Without American Chips.
American tech companies are getting the go-ahead to resume business with Chinese smartphone giant Huawei Technologies Co., but it may be too late: It is now building smartphones without U.S. chips.
Huawei’s latest phone, which it unveiled in September—the Mate 30 with a curved display and wide-angle cameras that competes with Apple Inc.’s iPhone 11—contained no U.S. parts, according to an analysis by UBS and Fomalhaut Techno Solutions, a Japanese technology lab that took the device apart to inspect its insides.
In May, the Trump administration banned U.S. shipments to Huawei as trade tensions with Beijing escalated. That move stopped companies like Qualcomm Inc. and Intel Corp. from exporting chips to the company, though some shipments of parts resumed over the summer after companies determined they weren’t affected by the ban.
Meanwhile, Huawei has made significant strides in shedding its dependence on parts from U.S. companies. (At issue are chips from U.S.-based companies, not those necessarily made in America; many U.S. chip companies make their semiconductors abroad.)
Huawei long relied on suppliers like Qorvo Inc., the North Carolina maker of chips that are used to connect smartphones with cell towers, and Skyworks Solutions Inc., a Woburn, Mass.-based company that makes similar chips. It also used parts from Broadcom Inc., the San Jose-based maker of Bluetooth and Wi-Fi chips, and Cirrus Logic Inc., an Austin, Texas-based company that makes chips for producing sound.
Trump cut off supplies so China looked elsewhere.
Trump changed his mind.
This is what constitutes a win.
“When Huawei came out with this high-end phone—and this is its flagship—with no U.S. content, that made a pretty big statement,” said Christopher Rolland, a semiconductor analyst at Susquehanna International Group.
Huawei executives told Rolland that the company was moving away from American parts, but it was still surprising how quickly it happened.
This was likely going to happen anyway, but Trump escalated the speed at which it happened.
Reuters reports U.S.-China Trade Deal 'Stalled Because of Hong Kong Legislation'
MarketWatch reports China 'Insists' on Tariff Rollbacks as Part of 'Phase One' Trade Deal
Sources in Beijing informed the Global Times that China insists the tariffs must be rolled back as part of the first-phase trade deal. A US pledge to scrap tariffs scheduled for December 15 cannot replace the rollbacks of tariffs. #ChinaUSTrade #TheBusinessSource pic.twitter.com/5IJuHMuTNM — The Business Source (@GlobalTimesBiz) December 1, 2019
Assuming there is a deal, the standard assumption for 17 months, Trump will announce two key elements.
China will resume buying the same amount of soybeans as before.
China will resume buying the same amount of chips as before.
The longer this takes the more wins there will be.
With that in mind, please recall Another Trump Tariff Success Story: Vietnam.
And despite the fact that Trump's China Tariffs Made Matters Made the Global Manufacturing Recession Worse and has killed US farmers, It's important to remember, Trump is collecting "huge tariffs".
So please brush aside this recession warning: Freight Volumes Negative YoY for 11th Straight Month.
If you still have Broadcom stock, you waited too long.
Gee Willikers...how long did it take the communists to reverse engineer and steal the intellectual property?
Usually they are much more efficient.
Both house stood by and let it happen...we need to check every representatives bank accounts!! Especially representative Feinstein and McConnell’s wife!
We’ll see if this phone is really as good as Huawei says it is. Nuawei wasn’t using American parts because Huawei’s CEO likes Americans.
The thing about the Mike Shedlock is that he sat out one of the biggest market rebounds ever. The guy’s a great contrary indicator. If he says buy, you should probably sell. And vice versa.
There’s also that little matter of needing Google’s Android. Without it, Huawei is dead in the water outside of China.
“This was likely going to happen anyway, but Trump escalated the speed at which it happened.”
That’s the only intelligent sentence in the whole article.
These are spy phones. The ones being spied on are the ones who use them.
McConnell is precisely why I have no desire to see this go to the Senate. After Obamacare was passed, I have no confidence that they will do anything right or good.
I designed chips for Huawei phones. I know 100% they stole our IP.
Chips obviously did not provide much leverage. What China needs is pork and chicken. A good way to test the strength of our economy against theirs might be to ask all Americans to eat pork for dinner three times a week and for Trump to refuse partial trade deals providing China with protein products until the trade war ends.
Gee, a little biased...
My guess at ‘the rest of the story’: Huawaui is paying more for these chips, is locked into long-term deals to use them, and is eating it’s heart out now US chips are available and China makes them keep using SOE-owned chips.
The USA won't always be around.
They’d already stolen all the technology anyway.
Exactly. The only think the chings are good at now is just STEALING, then reverse-engineer.
What I want is a phone with no Chinese parts...
Seriously, compact smart phone, good camera, not made in China.
Suggestions?
I believe the main CPU in a typical phone is an ARM processor.
ARMs are probably already produced in China...
if you have evidence I am sure Trump would like to hear it
They finally stole enough technology to do it.
Congrats, thieves.
Can we ban imports of Huwei products that have stolen US technology?
Or put a 100% tariff on them?
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