For Huawei, the stock may really run out, as it seems to have no choice but to explore. The latest ban includes all 38 Huawei subsidiaries in the list of entities. As for the new regulations, this is the strictest means of suppressing Huawei. This is because the new modification directly restricts Huawei from purchasing chips (and other spare parts, components or equipment) developed or manufactured using US software or technology. Every purchase requires permission from the United States, which is tantamount to banning purchases.
In response to the aforementioned new regulations, on 17 August, John Neuffer, President and CEO of American Semiconductor Industry Association (SIA), issued a statement on its official website stating that they are still evaluating the rules. However, extensive restrictions on brand sales will cause serious damage to the industry. The statement reads
“We are still considering the rule, but these major restrictions on commercial chip sales will cause significant disruption to the US semiconductor industry. We are surprised and concerned about the sudden shift of management from its previous support to a closer approach aimed at achieving stated national security goals, while reducing losses to US companies. We reiterate our view that sales of non-sensitive commercial products in China are driving semiconductor research and innovation here in the US, which is critical to America’s economic strength and national security. “
According to the SIA, it accounts for 95% of the US semiconductor industry. Chinese Foreign Ministry spokesman Zhao Lijian told a news conference today that the United States had generalized the concept of national security, abused national power and adopted various restrictive measures against Chinese companies such as Huawei. “This is a naked hegemonic act and we will continue to take the necessary measures to safeguard the legal rights and interests of Chinese companies.”
The US decision for Huawei is not surprising
Jefferies analysts wrote in a report: “The United States is surprisingly closing gaps in direct product rules. This is not entirely surprising. This means that Huawei cannot rely on third-party chip design companies such as MediaTek and Unisoc to continue to produce mobile phones. Broken hope also puts Huawei at risk of survival. “
On August 7, Yu Chengdong said that due to US sanctions, Huawei’s top Kirin series chips could not be manufactured after September 15.
Yu Chengdong said that over the past ten years, Huawei’s chip exploration has shifted from a serious backward, relatively backward, leading to foreclosure. “We have invested a lot of research and development, but unfortunately, in the field of semiconductor manufacturing, Huawei did not participate. We only do chip design, not chip making. Many of our very strong brands cannot be built. We said that to solve these problems, technology is needed… “