Huawei Equipment Ban: Asia Times

Huawei Technologies held a strong lead in the world’s 5G mobile broadband race, but the Trump administration is keen to slow that rollout. The US president, in an unprecedented move, tries to block sales to Huawei of any products made with US equipment, reports David Goldman for Asia Times. The move could block Huawei’s access to needed equipment and chips. “The ban may apply not only to the high-end chips that Huawei buys from Taiwanese fabricators for its high-end smartphones and servers, but also to radio frequency devices that power its 5G base stations,” he writes. “That might hold back China’s $170 billion internal rollout of 5G and hamper Huawei’s network building elsewhere, according to industry experts.” Complex supply chains for design and manufacturing combine technology from thousands of firms from many nations, and many companies may rework chains to avoid US equipment. China could retaliate by blocking US tech companies from its market, racing to develop its own supply of components. China purchases about 60 percent of the world’s chip supply, and Huawei will struggle to fulfill contracts. The US, focusing on regulations rather than innovation, could lose its position as leader in semiconductor technology. – YaleGlobal