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TSMC cannot supply to Huawei Soon due to change in US laws [Copy link] 中文

Rank: 6Rank: 6

Post time 2019-12-19 07:48:01 |Display all floors
Now US laws got changed,  it lowered the content of US tech from 25% to 10%. meaning if TSMC uses US 10% tech then it cannot supply Huawei.

If TSMC cannot supply to Huawei , then that's the end of TSMC in China.

CHinese government will take over TSMC Fab in Nanjing and Huawei will get involved into semiconductor manufacturing.

It will use TSMC fab in Nanjing and license SMIC 14/12nm tech to manufacturre chips.

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Rank: 6Rank: 6

Post time 2019-12-23 20:49:51 |Display all floors
US will announced in Jan 2020 the changes from 25% to 10% US content that will set the threshold forbidding companies supplying Huawei.. Clearly this is targetting TSMC. TSMC did a study and indicates 14nm process has about 15% US content therefore Huawei will not able use TSMC 14nm process. TSMC 7nm process has less than 10% therefore can be used for the time being. But US can change again and lower to like 5%. The goal is stop Huawei supply chain.

If TSMC 14nm has 15% US content , how about SMIC's 14nm ? It's not known yet.
SMIC can potentially dragged into being sanctioned due to US claiming it violating the law of supplying Huawei.

That's why I am promoting Huawei get its own fab and secretly license SMIC14/12nm process and have SMIC engineers secretly setup the fab in the background. This way, it won't implicate SMIC during this battle

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Rank: 4

Post time 2020-1-3 07:59:49 |Display all floors
TMSC should consider a role reversal quickly in case of its Huawei business.

TMSC forms a chip manufacturing business JV with Huawei on the terms that TMSC gets the global right to sell the chips manufactured from this entity with TMSC having the sole-exclusive market rights in Korea and Japan. Then in North America, with an agreed JV chip distribution rights unit in which TMSC holds 55% and Huawei holds 45%.

TMSC have some manufacturing on its own directly that supplies to Huawei and everyone else.

Huawei can have its own chip manufacturing plant that supplies to itself and globally with the exception of pre-agreed markets for TMSC.

TMSC and Huawei have some R&D facilities on joint basis and some separately on their own.

Huawei doesn't attempt to take over TMSC but even helps TMSC to compete against other chip makers. We always need friends in business. Don't worry that TMSC will change its behavior and alliance one day. Even your own family members and employees can do that in more drastic manner.

Third Huawei and TMSC look for another JV partner in Europe preferably Eastern Europe and friendly to both Germany and France, maybe Romania, Bulgaria or Hungary where land is cheap in abundance and people like to work like the Chinese and share similar life philosophy to the Chinese. Build there too. influence that nation on being globally friendly like Chinese.

TMSC should also look at the building of a chip-manufacturing eco-system while Huawei looks at the application eco-system.

TMSC and Huawei also need friends in EU and US.

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Rank: 8Rank: 8

Post time 2020-1-3 16:30:21 |Display all floors
If 7 nm wafers are exempted from US embargo, TSMC and SMIC can jointly collaborate to advance its production for the global market with view to joint and faster prototyping of even thinner wafers within these two years. But for this to happen, TSMC must first realize its future rests with China which has abundant specialist engineers and technical staff, the lack of in its new plant in the US causing its big investment there just to appease Trump is blowing a hole in its finances.

As for Huawei, what's in a name when one is doing development? Names are only important for branding of final product to markets. During design and development, cross-pollinate with other domestic players so that solutions can be shared, project risks reduced and funding saved. Success of each project will also help burnish China's new credential as a global technology designer on the back of her being a global technology applicator.

It is high time the quivering and quaking Europeans come out from the shadow of the US in order to realize their own potential to the fullest, something they once has at the turn of the last century. Now, their meekness before the US has reduced them to whimpering jesters under the fancy and mercy of a hectoring US.

One collaborative project they can do with China is to design a new electronics that is different from present-day electronics. One architecture can be neural networks of self-learning AI chips which can adapt to changing responses and demands from the environment. Such a new configuration can set both development pace and technical standards, and dovetail with the other development of encrypted quantum processing.

If the Europeans however decide to go with the US which has so far only been as martial as China is peaceful, in order to seek technological decoupling based on bloviated fears, they will lose the China market as she rapidly develop her technical independence.

After all, she has the brains, determination, cash, scale and size, rapid and cost-effective production, speed-to-market and a young, techno-agile ecosystem all geared up to bring technology to the masses of the world.


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