The new cold war between the US and China is heating up again with Huawei being banned from having their in-house processors fabricated using American equipment. American companies such as Lam Research and Applied Materials have virtual monopolies in certain sub segments of the semiconductor equipment field. Without this equipment, advanced processors cannot be fabricated by TSMC, Huawei’s largest partner. TSMC only has a 100 day grace period, after which, they can no longer work with Huawei. To add insult to injury, TSMC, has also agreed to build a 5nm fab in the US, showing where their allegiance lies. Huawei’s custom mobile SOCs, 5G network chips, and embedded business are all under grave danger due to this new ruling.
Hi Dylan! There is chatter of Huawei re-entering 5G SOC market, using SMIC foundry. Your thoughts on their ability to compete and win will be greatly appreciated. Thank you.