The logo of Huawei is seen in front of the local offices of Huawei in Warsaw, Poland, on January 11 2019. Picture: REUTERS/KACPER PEMPEL
At first, that also threatened chief supplier Taiwan Semiconductor Manufacturing, until it became clear that a legal workaround was available: let Huawei buy chips that it did not design. As a result, Taiwan’s MediaTek stepped into the breach and quickly became the biggest purveyor of 5G smartphone components, which are made by TSMC.
There are dozens of steps in developing, manufacturing and installing chips in a device, with US technology an integral part throughout. Synopsys and Cadence Design Systems make software used to design semiconductors; Lam Research and Applied Materials are suppliers of manufacturing equipment — all four companies are based in Silicon Valley.
More importantly, such an alternative supply chain will take time, which China does not have. Despite billions of dollars in spending and investment, the nation still lags behind the US in semiconductor technology. This is a fast-moving industry where even the best can struggle, as Intel has found. As the underdog, China has no choice but to soldier on, and Huawei is both the symbol and the incarnation of this great battle.
Source: News Formal (newsformal.com)
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