U.S. sanctions took effect, Huawei does not have plan B | Huawei chip ban | SMIC | TSMC

On September 15, the US ban on Huawei took effect. Almost all major component manufacturers in the world will no longer supply chips to Huawei. Even China's own chip foundry giant "SMIC" has euphemistically stated that it must have “absolute compliance with international regulations."

After the United States introduced the ban, and prior to the ban taking effect, Huawei urgently stocked up on microchips.

According to the latest report of the research organization Strategy Analytics, in 2020, Huawei will manufacture 190 million smartphones, with a market share of 15.1%, dropping to the third position globally; if the ban continues, Huawei’s chip inventory will be exhausted, its smartphone business will be in a state of collapse, and its market share will drop to 4.3%, which is equivalent to quitting the list of leading smartphone manufacturers.

People are wondering: does Huawei have a plan B?

The Chinese government's strong desire for Domestic-made chips and the huge amount of money offered have provided opportunities for Chinese scammers to take advantage of. Companies such as Wuhan Hongxin or HSMC and Hanxin One are two of the most prominent cases.

Some commentators believe that whether it is the red heart of Wuhan or the heart of the Han Dynasty, the Chinese government and state-owned banks have invested huge amounts of money, it is enough to allow big and small scammers to weave a strong and protective corruption network, that they can enjoy for the rest of their lives at ease.

Jinhua poached technical talent from Micron Technology in the United States and had spies steal more than 900 technical secrets and patent files from Micron.

An academician of the Chinese Academy of Engineering (Ni Guangnan) said in an interview with Chinese media, the “Huawei case" is a "Warning". With regards to developing technologies of chip manufacturing, China should have the mentality of “working hard for 10 years before seeing results.” China can no longer use its previous methods in the face of US sanctions. He hopes that China's chip research team can stick to a decade of diligent hard work. But how many people are willing to work for a decade with unforeseen results, when scammers can quickly gain wealth and glory?

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