With a further escalation in the trade war with the United States, China should no longer let the opponent 's 5G SoCs into the country.
A possible ban on 5G systems-on-a-chip (SoCs) from the United States in China as a countermeasure in the trade war would have a significant impact on US companies like Apple and Qualcomm. A future 5G iPhone from Apple could not be launched in China. This emerges from an analysis paper that circulates in the IT industry and is available.
Huawei does not demand these sanctions from Beijing, but they can be expected as a countermeasure, Huawei's spokes person told that the effects of such a ban would be limited for China, as there are many alternative providers of 5G equipment such as Huawei, Samsung, Ericsson and Nokia. Mediatek, Samsung and Spreadtrum (Unisoc) could also deliver 5G-Socs.
Huawei's rotating CEO, Eric Xu, said back in March that the Chinese government would likely take retaliatory measures if the U.S. tightened sanctions to prevent companies like TSMC in Taiwan from blocking U.S. chip-making machines for Huawei use. TSMC (Taiwan Semiconductor Manufacturing Corporation) is by far the largest contract manufacturer for chips.
Together, Apple and Qualcomm would lose over $70 billion annually if additional restrictions were imposed. US chipmakers that supply Apple, including Qualcomm, Broadcom, Micron, Texas Instruments, Skyworks and Qorvo, would therefore also be indirectly affected by any restrictions on Apple's sales in China.
The worldwide market share of Qualcomm could decrease by up to 40 percent if Chinese smartphone manufacturers stopped using their chips. "We agree with our partners in the US industry that a further escalation of the trade war in the technology sector should be avoided under all circumstances."
An extension of US export controls to chip manufacturing equipment that is obviously being discussed within the Trump administration is classified by Huawei as the most serious threat to the global technology industry to date . "The measure now under discussion would be a massive encroachment on the property already acquired from many non-American technology companies.
Any company that has acquired or will acquire manufacturing technology from the United States must always expect the US government to dictate how it can use its property after the acquisition.
The global semiconductor industry has developed a very well functioning system of cooperation and division of labor over decades. "This global cooperation system is at stake with such sanctions considerations, at a time when the global economy is more dependent than ever on the well-functioning and stable global value chains due to the difficulties caused by the Covid 19 pandemic". There is a risk of severe damage at the worst possible time. "According to our estimates and those of independent analysts, the US technology industry has the most to lose."
On March 9, 2020, the Boston Consulting Group published a report on decoupling the internationalized semiconductor industry. It says: "The direct impact of the decoupling on US semiconductor companies would be the loss of all revenue from Chinese technology customers as well as customers in other countries that would also be decoupled from the United States." Sales of U.S. semiconductors would decrease 37 percent, according to the study, which equates to $83 billion in 2018. This would happen almost immediately after the new US restrictions came into force.
Representatives of nine US industrial organizations issued a letter to US Secretary of Commerce Wilbur Ross in early April warning of the plans. There are "significant effects on the semiconductor industry, its global supply chain and the entire technology sector".
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