Yu Chengdong, CEO of Huawei’s consumer business, recently admitted that Huawei’s Kirin high-end chips will run out of inventory by September 16 due to the second round of sanctions imposed on Huawei by the United States. How does Huawei break through the chip crisis? There are many concerns. The CNBC website of the United States said on the 11th that Huawei has five options, but “all five options are facing major challenges”. Some analysts say that “China chip” is only a matter of time. The Chinese government has also issued a strategy to promote the chip industry. The technology containment of the United States is likely to make China’s chip catch-up faster. < p > < p > on the 12th, it was rumored that Huawei would officially launch the “Tashan plan” to build a 45 nanometer chip production line without us technology. But it was later denied by Huawei related people. Neil Moston, executive director of the US strategic analysis company, told CNBC that Huawei’s smartphone division did not have enough chip purchasing options, “the prospect is bleak, but it can be saved,” CNBC website said on the 11th. He said Huawei can cooperate with 15 chip suppliers in the world, but only five options are “reliable”: continuing to use Kirin processor series and eventually replacing TSMC with SMIC, China’s largest chip manufacturer; outsourcing to China’s Ziguang zhanrui; outsourcing to Taiwan’s MediaTek; outsourcing to SamSung of South Korea; and asking the U.S. government to lift the ban on Qualcomm. < / P > < p > however, Moston says, “all five options face significant challenges.” First, SMIC uses us equipment to make chips, which means it will not be able to supply to China. In terms of technology, it also lags far behind TSMC. Huawei’s Kirin chips are made in the so-called 7-nanometer process, which is one of the most advanced chip manufacturing technologies. Chipmakers are now looking for state-of-the-art 5-nanometer process. At present, it is not clear when SMIC will introduce 7 nm production process on a large scale. At the same time, the low-end semiconductors produced by China violet light zhanrui, which designs its own chipsets, cannot meet Huawei’s needs. It will take years for Ziguang zhanrui to improve its scale and quality, Moston said. Moreover, Samsung may be reluctant to share with Huawei, the most powerful competitor in the smartphone sector. According to the report, Qualcomm is lobbying the U.S. government to lift a ban on the sale of products to China. However, with the advent of the US election, it is difficult to see the US hardline stance eased this year. < p > < p > Huawei is one of the few companies in the world that designs its own chips for smart phones. The lack of access to cutting-edge chips will threaten Huawei’s position as the world’s largest smartphone manufacturer. Several analysts expect Huawei to survive 2020, but the next two years may be very difficult. Germany said that, taking the semiconductor industry as an example, although China’s chip demand reached 60% of the world, only 13% of China’s self-made chips. In recent years, China has realized the gap between the chip industry and the world. According to Reuters, the United States has intensified its crackdown on Huawei, while China is pushing for internal economic circulation and striving to avoid being controlled by others in the high-tech field. SMIC, which has just been listed on the science and technology innovation board, said it plans to invest US $2.55 billion to produce integrated circuits of 28nm and above. Zhang Rujing, founder of SMIC, clearly stated that the United States’ ability to restrict China is not so strong, “but we can not take it lightly” and “I believe we can catch up with it”. It is understood that Europe launched many chip development strategies in the 1980s to compete with the United States and Japan. For example, the Jessi project has 16 countries, 190 institutions and more than 3000 scientists and engineers to support the research and development of microchip technology. At present, there are three well-known chip manufacturers in Europe: Infineon, STM and NXP. < / P > < p > “it’s only a matter of time before the” China chip “is just a matter of time,” German weekly said on the 11th. The Chinese government recently released a new strategy to promote the chip industry, introducing nearly 40 policy measures, which is “the highest in history”. For example, the integrated circuit manufacturing enterprises or projects with integrated circuit width less than 28nm and operating period of more than 15 years are exempted from enterprise income tax from the first year to the tenth year. The United States, Europe, Japan and South Korea, which are leading in the chip industry, have had similar strategies. With the world’s largest market, huge capital pool, and more and more measures to attract professionals, it is believed that China’s chips will catch up faster. ▲Continue ReadingAmerican companies begin to give up R & D: who should pay for corporate research?