Thursday, November 5th 2020

Huawei to Enter Silicon Manufacturing Business without US Technologies

Semiconductor manufacturing has been the latest victim of the recent trade war between China and the United States. With the US imposing sanctions on Chinese manufacturers, they have not been able to use any US technology without the approval of the US government. That has caused many companies to lose customers and switch their preferred foundry. The US government has also decided to sanction a Chinese company Huawei from accessing any US-technology-based manufacturing facilities, thus has prevented the Chinese company from manufacturing its chips in the facilities of TSMC. Left without almost any way to keep up with the latest semiconductor technology, Huawei is reportedly working on its own manufacturing facilities.

According to the Financial Times, Huawei is about to enter domestic silicon production with its partner company Shanghai IC R&D. And a big note here is that the manufacturing facility will not use any US technology. The production is allegedly going to start as soon as the end of this year, and the first process that will come out the door will be a rather outdated 45 nm node. The company is expecting to move on to a more advanced 28 nm node by the end of next year. While the capacities are unknown, we can assume that it will be enough for the company's purposes. With this move, Huawei will be 100% independent from any US influence and will own the complete vector of software and hardware, that is a custom made design by the company.
Huawei R&D Center
Source: Financial Times via Hardwareluxx.de
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21 Comments on Huawei to Enter Silicon Manufacturing Business without US Technologies

#2
zlobby
Donnie sure did them a huge favor.
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#3
Jozsef Dornyei
The steps against Huawei have accelerated Chinese IT developments. China has her own money transfer systems - what was seen as strategically important by the government. However anything else was not - China could have used US IT tech for a few decades longer. Now China will develop her own IT and will use that. The same way they use their own money transfer systems and not the US money transfer systems.
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#4
lynx29
its a 45nm node... lol. sad.
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#5
Fourstaff
lynx29its a 45nm node... lol. sad.
Nahalem was released in 2008 under 45nm tech - the Chinese are ~12 years behind and catching up.
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#6
lynx29
FourstaffNahalem was released in 2008 under 45nm tech - the Chinese are ~12 years behind and catching up.
i mean by the time they catch up we will be on 2nm or 5nm on everything, and at that point who cares? phones are already saturated, they don't need to be faster. lol
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#7
Caring1
lynx29i mean by the time they catch up we will be on 2nm or 5nm on everything, and at that point who cares? phones are already saturated, they don't need to be faster. lol
They make more than phones.
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#8
blobster21
They were forced to stir free from your supply chain, you (US industries) will face the consequence soon
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#9
Anymal
Good luck by catching up 5nm from sammy and tsmc.
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#10
kapone32
The first logistical steps in walking the road to War are to secure your technology. We have already been on the road and there is more to come. As far ahead as you think we are if they can absorb Taiwan (like they want to) it would give them access to facilities. That is the reason there is (and has been) a full battle group in the South China Sea using Ronald Reagan Class Aircraft carriers. It has been 20 years since they had that US spy plane. As much as people may think that established Greed will keep everything in check the US and Japan were at the height of their trade relationship when Japan attacked.
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#11
not_my_real_name
lynx29i mean by the time they catch up we will be on 2nm or 5nm on everything, and at that point who cares? phones are already saturated, they don't need to be faster. lol
But the difference between 14 and 7 nm is not so significant than between 90 and 45 nm. If they master 14 nm at the same paсe, I guess - in 4 years, they will no longer lag far behind.
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#12
R0H1T
AnymalGood luck by catching up 5nm from sammy and tsmc.
It's weird you're saying that, it's not like Sammy & Timmy are US companies :rolleyes:
Despite China's blatant IP theft & what not, it's the US govt & profit leeching companies like Intel that are largely responsible for the mess they're currently in.
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#13
Hardware Geek
They want domestic manufacturing of tech so they can control the system and not be reliant on international businesses to produce their processors. I'm surprised it took this long for them to announce a move like this. I suspect this will simply speed up the pace of their manufacturing node development and benefit them more in the long run. The less reliant they are on outside companies, the more belligerent and aggressive they can be in business, and likely war if they decide to annex Taiwan or other strategically important nations.
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#14
Jozsef Dornyei
There won't be a 'hot' war. No one can fight (and survive) a war with a bomb owner country. Not even a war with North Korea - and she is tiny compared to China. Wars are restricted to Hollywood movies. :) However the economic and technology impact is real.
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#15
Caring1
Hardware GeekThe less reliant they are on outside companies, the more belligerent and aggressive the U.S. will be towards them.
Fixed that for you.
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#16
kapone32
Jozsef DornyeiThere won't be a 'hot' war. No one can fight (and survive) a war with a bomb owner country. Not even a war with North Korea - and she is tiny compared to China. Wars are restricted to Hollywood movies. :) However the economic and technology impact is real.
Maybe you should ask the people of Ukraine, Azerbaijan or Dagestan if that is true. The US does not spend most of it's GDP on Military just for show. China is not building Aircraft Carriers just for the sake of it.
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#17
Khonjel
kapone32Maybe you should ask the people of Ukraine, Azerbaijan or Dagestan if that is true. The US does not spend most of it's GDP on Military just for show. China is not building Aircraft Carriers just for the sake of it.
Avoiding widespread war is the reason the world largely ignores the instances you mentioned.

Regardless chinese independence of tech is a good thing. You western nations decrease dependence on Chinese manufacturing and they decrease western tech dependency. Everybody except profit-greedy executives win.

With the advance of robotics I can even envision some manufacturing to come back to the west.
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#18
Easo
People if you think that 2nd biggest economy with unlimited brainpower and clear plan cannot catch up then you are naive.
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#19
Mouth of Sauron
EasoPeople if you think that 2nd biggest economy with unlimited brainpower and clear plan cannot catch up then you are naive.
True. Many people don't realize that USA technology isn't made by 300-400 millions of world-smartest native USA citizens, but much more by imported best brains from abroad. It's not an offensive statement, just the simple number ratio. Many people also don't realize that stuff like trade or technological sanctions (which are basically demonstration of force), don't really increase confidence in the USA as a global leader - what happens to China can happen to others, and they may have much less chance in overcoming them. Polls say so, confidence in USA leadership is at historical low, and stuff like trade war (hurts everyone) or blame game on virus (doesn't help anyone) with China don't help a bit.

I believe that a true world leader would handle things better, instead of practically abandoning WHO and WTO - or enforcing bans to an IT company.

I wouldn't like to see my company closed, and we rely heavily on Chinese-imported raw materials. If we're going to be banned from buying them, or banned from selling our stuff to a bunch of countries - it won't be a good thing for sure. I wish this stupid feud over...
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#20
Beertintedgoggles
Good, this is how it should have been in the first place. Enter the market with your own IP and not stolen technology. Everyone saying "oh, we (the US) forced them to do this and now they are going to be so strong... blah blah blah". Well then, why didn't they just do that in the first place? Crickets.....
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