Microchip wars: China’s intriguing response | IFRI

2023-09-07 07:49:45

The second life of Huawei. This is the expression chosen by L’Express, a few weeks ago, to evoke the revival of this flagship of Chinese tech in the automobile or even energy. The firm had recorded a sharp contraction in its turnover – more than 30 billion euros less between 2020 and 2021 – following heavy American sanctions pulverized its smartphone division.

These attacks, instigated by Donald Trump, are currently continuing under the Biden administration. They deprive China of several advanced American technologies and more particularly target the supply of electronic chips, or semiconductors, among the most sophisticated. […] The recent release of the Mate 60 Pro has a strong taste of revolt. This new 5G model from Huawei, exclusively available in China, embeds for the first time since the execution of the sanctions a cutting-edge chip manufactured locally by the founder Smic. […]

The timing, too, reinforces the message: the Mate 60 Pro was made official while Gina Raimondo, the American Secretary of State for Commerce, began a delicate visit to Beijing. “This is a symbolic victory for China, as all the players involved in the creation of this chip – HiSilicon, Huawei and Smic – are on the list of companies specifically targeted by the sanctions”, REMARK Mathilde Vellietresearcher at Ifri (French Institute of International Relations) and specialist in Sino-American relations. […]

But the announcement of the Mate 60 Pro is probably the one that worries Washington the most. “It is a reminder of the risk posed by sanctions: that of encouraging the Chinese to more independence and autonomy.continues Mathilde Velliet. […]

Several elements plead rather for a moderate reaction from the United States. The Mate 60 Pro is already out of stock, hinting at limited chip availability. Little information has leaked out regarding its use and reliability. “It is too early to say whether China will be competitive in the design of this kind of high-end chip. In addition, the United States already imposed, on August 9, new restrictions on outgoing investments in Chinese technologies. The latter are not yet felt in the country”, observe Mathilde Velliet.

Read the full article on the website L’Express.

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