But this time, in addition to the sixth extension of the temporary license to Huawei, the United States also upgraded export controls to Huawei, Huawei Hisilicon was specifically mentioned. On the one hand, the effect of the entity list is not good, and the temporary license continues to be extended; on the other hand, the export control of Huawei, especially chips, is upgraded.
In response, the Global Times reported that sources said that if the US finally implemented the above plan, China would fight back strongly and safeguard its legitimate rights and interests.
The United States is dissatisfied with Huaweis efforts to upgrade export controls in response to the entity list
According to the US Department of Commerce, the decision was released after receiving public opinions from many companies, associations and individuals on TGL, and the Industrial Security Bureau will continue to assess the impact of companies and individuals who have not yet transferred from Huawei equipment on US national security and foreign policy. For the extension, the US Department of Commerce said it would provide space for operators who use Huawei equipment, especially those in rural areas of the US, to continue to temporarily operate these equipment and existing networks, while accelerating the transition to alternative suppliers.
Obviously, the U.S. governments containment of Huawei is to hurt the enemy by 800 yuan. It has repeatedly extended TGL, allowed Huawei to buy some U.S. - made products, and U.S. enterprises can continue to purchase Huaweis products. In addition, the new regulatory measures give a buffer period of 120 days, which is considered by the industry to consider the production cycle of the chip, including the back-end packaging test, taking all process time into account.
The reason for BIS to upgrade its control over Huawei is that Huaweis entrusting OEM plants using American equipment to produce semiconductors undermines the purpose of the entity list.
Therefore, in the new plan announced by bis, as long as chips produced by relevant technologies and equipment in the United States are used, the permission of the U.S. government must be obtained first, which will make it difficult for Huawei to obtain corresponding software and hardware to avoid U.S. export controls.
The following is the original translation of the new plan of the U.S. Department of Commerce the efforts of the Department of Commerce to weaken Huaweis entity list and restrict the use of products designed and produced by U.S. technology:
May 15, 2020
Since 2019, BIS listed Huawei Technology Co., Ltd. and its 114 overseas related branches on the entity list, companies exporting US goods are required to obtain licenses. However, Huawei continues to use US software and technology to design semiconductors by entrusting us equipment to produce in overseas factories, which undermines the national security and foreign policy purposes of the entity list.
Despite the U.S. Department of Commerces entity list action last year, Huawei and its foreign subsidiaries increased their efforts to weaken these national security based restrictions through localization efforts. But that effort still depends on American technology. Wilbur Ross, the US Department of Commerce, said. This is not the behavior of responsible global businesses. We must revise the rules used by Huawei and Hisilicon, and prevent vicious activities caused by US technology that run counter to us national security and foreign policy interests.
Specifically, this targeted rule change will impose export control regulations (ear) on the following products produced abroad:
(i) Products such as semiconductor design produced by Huawei and its affiliated companies on the entity list (for example, Hisilicon semiconductor), which are direct products of some software and technology on the U.S. business control list (CCL);
(II) chipsets and other products produced in accordance with the design specifications of Huawei or the affiliated companies on the entity list (for example, Hisilicon semiconductor), which are direct products of some CCL semiconductor manufacturing equipment located outside the United States. Such products produced in foreign countries only need a license if they know they are to be re exported, exported from abroad or transferred to Huawei (domestic) or any Huawei affiliate on the entity list.
In order to avoid the direct adverse economic impact on the foreign factories using the US semiconductor manufacturing equipment, the US semiconductor manufacturing equipment has been used before May 15, 2020 to start the product production process based on Huawei design specifications, which is not subject to the new license provisions, as long as these products are re exported, exported or transferred from abroad within 120 days from the effective date of the new regulations (in China Inside).
It is reported that in the new plans binding regulations, Hisilicon semiconductor is mentioned in every article, which shows that BIS is to control Huaweis export from the most fundamental and important chip. In other words, the U.S. restricts all semiconductor factories (including wafer foundry and IDM factories) that use U.S. software and hardware globally. In the future, every chip produced by Huawei needs to be licensed by the U.S. government.
China can restrict or investigate Qualcomm, Cisco, apple and other US companies
In response, the Global Times reported: if the US finally implements the above plan, China will fight back strongly and safeguard its legitimate rights and interests.
At the same time, the report pointed out that the specific anti system options that China can use include the following: including relevant US enterprises in Chinas list of unreliable entities, restricting or investigating Qualcomm, Cisco, apple and other US enterprises in accordance with laws and regulations such as the measures for network security review and the anti monopoly law, and suspending the purchase of Boeing aircraft.
In addition, on May 31 last year, a spokesman for the Ministry of Commerce, Gao Feng, told the media at a small-scale special conference that China would establish an unreliable entity list system in accordance with relevant laws and regulations. Foreign enterprises, organizations or individuals that do not abide by market rules, deviate from the spirit of contracts, block or cut off Chinese enterprises for non-commercial purposes, or seriously damage the legitimate rights and interests of Chinese enterprises will be included in the list of unreliable entities.
Huawei Hisilicons growth against the trend or important reasons for the introduction of new bis policies
The reason why the U.S. government aims the gun at Hisilicon is not only that the chip is the most core device, but also that Hisilicon has made remarkable achievements under the entity list.
According to the monthly semiconductor industry report released by cinnor research, a domestic analysis agency at the end of April this year, Huawei Hisilicons share in Chinas smartphone processor market reached 43.9%, surpassing Qualcomm for the first time (32.8%).
In early May, icinsights, the international market research organization, announced the sales ranking of the top 10 semiconductor manufacturers in the first quarter of 2020. Huawei Hisilicon also jumped to the 10th place from the 15th in 2019, which is the first time that it has ranked in the top 10.
It is understood that the sales volume of Hisilicon in the first quarter of 2020 is nearly US $2.7 billion, with a year-on-year increase of 54%, the largest increase among the top ten.
Chinas chip industry is growing, but the development of science and technology should not have national boundaries
There should be no national boundaries for the development of science and technology, but in the face of strong resistance, there is only one way out. On April 9, 2020, the glory play4t new machine was released. The Kirin 710A used by it was produced by SMIC at 14nm, while previously, the Hisilicon Kirin 710 series was manufactured by TSMC at 12NM.
It is reported that the 14 nm process of SMIC is the same generation as the 16 nm process of TSMC, while the 12 nm process is the improvement of TSMC on the 16 nm process. Although there is still a gap between SMIC and TSMC in advanced semiconductor technology, it can not be ignored that Chinas chip industry chain is accelerating under the influence of American policies.
In addition, for the first time, SMIC has commissioned Huaweis Kirin SOC processor, which is also of great significance. From packaging to wafer foundry, Huawei will gradually transfer the core SOC production and manufacturing supply chain to domestic companies, which will face many major challenges. In the long run, it will be good for Huawei and Chinas chip industry.
It is also reported that two national investment funds, national integrated circuit Fund II and Shanghai integrated circuit Fund II, have respectively invested 1.5 billion yuan in SMIC Seven point five Billion US dollars (about 16 billion yuan), which will promote the mass production of domestic processes of 14nm and below.
Finally, it should be emphasized that the technology industry represented by chips has become a global industry of cooperation and division of labor. Only global cooperation can promote the progress of global science and technology, and only in this way can countries around the world better enjoy the dividends brought by the development of science and technology. The US governments policies towards Huawei, Europe and other countries are not wise to reverse the development of science and technology.
Last question: what do you think of the US approach?