China’s chip retaliation against US will go against its self-interest

An interview with John Lorenz, Technology & Market Analyst, Yole Développement and conducted by Pradeep Chakraborty  for Pradeep’s TechPoint – The China vs. USA chip battle is all the rage today. The USA imposed restrictions on China’s Huawei, limiting the ability to use American technology to design and manufacture semiconductors produced for it, abroad.

End customer demand to exist

John Lorenz

How are US chip supplies sales position right now, post China-US tiff?

John Lorenz, Technology and Market Analyst within the Computing & Software division at Yole Développement (Yole), part of Yole Group of Companies, said: “The domestic US chip suppliers that I have spoken to are still processing exactly what the latest Department of Commerce moves really mean. There may still be legal ways of shipping to Huawei subcontractors, and thus, a path to continuing to count the Chinese technology giant as a customer.

“Additional attention is being given to the relationships with other Chinese handset OEMs (like OPPO and Xiaomi), as there is a belief that the end customer demand will still exist, even if Huawei is crippled.”

Will SMIC come through?

There is news of SMIC picking orders. How is China adjusting?

Lorenz said that SMIC is indeed gaining some orders. For example, Huawei is signing up for manufacture of the Kirin710A Application Processor on SMIC’s 14nm process. However, this is really only a viable contingency on about half of Huawei’s APUs, because SMIC is not capable of running at the very advanced lithography that is required for Huawei’s most advanced processors… Full article


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