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ARM No Longer In Business With Huawei Either
Earlier this week the trade war between China and the United States escalated, the US government this round targeted Huawei; US companies are no longer allowed to trade with the telecom specialist. ARM now also will halt cooperating with the manufacturer.
The British ARM Holdings has stated in a memo to its employees that it will immediately end all relationships with Huawei (and therefore with HiSilicon). According to the BBC, an analyst has concluded that this decision will "have a major impact on Huawei's chip-making capabilities," because many of these chips were made based on ARM's architecture.
-- BBC --
UK-based chip designer ARM has told staff it must suspend business with Huawei, according to internal documents obtained by the BBC. ARM instructed employees to halt "all active contracts, support entitlements, and any pending engagements” with Huawei and its subsidiaries to comply with a recent US trade clampdown. ARM's designs form the basis of most mobile device processors worldwide. In a company memo, it said its designs contained “US origin technology”. As a consequence, it believes it is affected by the Trump administration's ban. One analyst described the move, if it became long-term, as an “insurmountable” blow to Huawei’s business. He said it would greatly affect the firm's ability to develop its own chips, many of which are currently built with ARM’s underlying technology, for which it pays a licence. These are used in the Chinese company's 5G base stations and computer servers in addition to its smartphones. Cambridge-headquartered ARM had been described as the UK's largest tech firm until its takeover by a Japanese fund. It employs 6,000 workers and lists eight offices in the US.
On Monday 20 May, US government officials issued a 90-day reprieve on some of the restrictions in order to minimise immediate disruption. But ARM believes that the temporary licence involved does not apply to it. A spokesman for ARM declined to offer any additional clarity about the current status of its Huawei contracts.
"ARM is the foundation of Huawei’s smartphone chip designs, so this is an insurmountable obstacle for Huawei,” said Geoff Blaber, from CCS Insight.
"That said, with an abundance of companies in Huawei’s supply chain already having taken action to comply with the US order, Huawei’s ability to operate was already severely affected.”
What is not yet clear is whether ARM is acting on its own interpretation of the US rules, or whether it has been advised by the Commerce Department.
"If that interpretation is correct, that’s going to affect every semiconductor company in the world,” remarked analyst Lee Ratliff, from IHS Markit.
"They’re not going to be able to easily replace these parts with new, in-house designs - the semiconductor industry in China is nascent.”
schmidtbag
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#5672000 Posted on: 05/22/2019 08:05 PM
It's one thing for Google and Intel to drop support, but now that ARM is, Huawei is officially screwed.
ARM is now Japanese, at least if you base this on whoever owns them.
It's one thing for Google and Intel to drop support, but now that ARM is, Huawei is officially screwed.
The British ARM Holdings
ARM is now Japanese, at least if you base this on whoever owns them.
Kaarme
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#5672003 Posted on: 05/22/2019 08:10 PM
Their first priority is to comply with the Chinese government, though. It has been the national policy of China for the last decades to acquire high tech knowhow from abroad as much and fast as possible. In retrospect, I now think their recent huge efforts to develop domestic processor production capabilities is because the Chinese government did foresee this happening sooner rather than later, not only was afraid of it maybe happening at some point. Perhaps this is only the tip of the iceberg they have predicted. Many in the West don't bother to think about things too much, but the Chinese surely haven't forgotten there will always be a gap between democracies and communisms.
I hope they're doing this because they're actually a national security threat, and not just destroying a company to hit China. This is basically a wrap for Huawei, who as far as I can tell have been trying to comply as much as they can with the U.S. government.
Their first priority is to comply with the Chinese government, though. It has been the national policy of China for the last decades to acquire high tech knowhow from abroad as much and fast as possible. In retrospect, I now think their recent huge efforts to develop domestic processor production capabilities is because the Chinese government did foresee this happening sooner rather than later, not only was afraid of it maybe happening at some point. Perhaps this is only the tip of the iceberg they have predicted. Many in the West don't bother to think about things too much, but the Chinese surely haven't forgotten there will always be a gap between democracies and communisms.
vbetts
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#5672014 Posted on: 05/22/2019 08:23 PM
It's one thing for Google and Intel to drop support, but now that ARM is, Huawei is officially screwed.
ARM is now Japanese, at least if you base this on whoever owns them.
Google had to comply to US government orders.
It's one thing for Google and Intel to drop support, but now that ARM is, Huawei is officially screwed.
ARM is now Japanese, at least if you base this on whoever owns them.
Google had to comply to US government orders.
schmidtbag
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Posts: 4340
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#5672017 Posted on: 05/22/2019 08:27 PM
Understood; what I'm saying is Huawei could've managed to survive without Google or Intel's support. But without ARM, Huawei has nothing - the bulk of their income directly depends on ARM.
Google had to comply to US government orders.
Understood; what I'm saying is Huawei could've managed to survive without Google or Intel's support. But without ARM, Huawei has nothing - the bulk of their income directly depends on ARM.
lucidus
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#5672023 Posted on: 05/22/2019 08:37 PM
Damn. No amount of jingoistic non-sense will save Huawei from this.
Damn. No amount of jingoistic non-sense will save Huawei from this.
Alessio1989
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Senior Member
Posts: 1347
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#5672029 Posted on: 05/22/2019 08:49 PM
What if the PRC government decide to tax or ban the sale of rare-earth elements to certain non Chinese companies? I guess the 1929 would become just a joke...
What if the PRC government decide to tax or ban the sale of rare-earth elements to certain non Chinese companies? I guess the 1929 would become just a joke...
Mesab67
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Senior Member
Posts: 122
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#5672047 Posted on: 05/22/2019 09:42 PM
What a sick world we live in.
What a sick world we live in.
user1
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#5672064 Posted on: 05/22/2019 10:47 PM
Honestly I see Huawei as being collateral damage.
Fact of the matter is ,given the kind of control china has over it's companies, even if huawei wants nothing to do with it, they are essentially forced to comply by law.
With china's well known use of technological espionage , the chances china would not use their access to huawei is pretty low, when so many countries use their products for communications, even millitary.
I hope they're doing this because they're actually a national security threat, and not just destroying a company to hit China. This is basically a wrap for Huawei, who as far as I can tell have been trying to comply as much as they can with the U.S. government.
Honestly I see Huawei as being collateral damage.
Fact of the matter is ,given the kind of control china has over it's companies, even if huawei wants nothing to do with it, they are essentially forced to comply by law.
With china's well known use of technological espionage , the chances china would not use their access to huawei is pretty low, when so many countries use their products for communications, even millitary.
Order_66
Senior Member
Posts: 205
Joined: 2008-07-19
Senior Member
Posts: 205
Joined: 2008-07-19
#5672081 Posted on: 05/22/2019 11:20 PM
Honestly I see Huawei as being collateral damage.
Fact of the matter is ,given the kind of control china has over it's companies, even if huawei wants nothing to do with it, they are essentially forced to comply by law.
With china's well known use of technological espionage , the chances china would not use their access to huawei is pretty low, when so many countries use their products for communications, even millitary.
Huawei is required to comply with chinese intelligence law, their CEO is a member of the CCP.
Article 11 of the law states that if you're doing business with any foreign entity you must gather intelligence (aka spy) on that foreign entity.
Honestly I see Huawei as being collateral damage.
Fact of the matter is ,given the kind of control china has over it's companies, even if huawei wants nothing to do with it, they are essentially forced to comply by law.
With china's well known use of technological espionage , the chances china would not use their access to huawei is pretty low, when so many countries use their products for communications, even millitary.
Huawei is required to comply with chinese intelligence law, their CEO is a member of the CCP.
Article 11 of the law states that if you're doing business with any foreign entity you must gather intelligence (aka spy) on that foreign entity.
Order_66
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#5672082 Posted on: 05/22/2019 11:21 PM
https://www.computerworlduk.com/security/huawei-controversies-timeline-3692840/
https://www.computerworlduk.com/security/huawei-controversies-timeline-3692840/
rl66
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#5672086 Posted on: 05/22/2019 11:24 PM
You can add to that that the whole Vodaphone group will no more sell Huawei product... It's really bad days for them.
You can add to that that the whole Vodaphone group will no more sell Huawei product... It's really bad days for them.
Kripke
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Junior Member
Posts: 8
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#5672088 Posted on: 05/22/2019 11:41 PM
Huawei is simply put an extension of the Chinese communist government used to conduct industrial espionage against various international companies and entities. They are really no different than the Chinese People’s Liberation Army cyber-espionage division.
As you have mentioned the Chinese have a systematic and nationwide program to transfer technology, steal technology, copy technology, buy foreign companies with technology and basically use any and all means necessary including criminal acts all in order to leapfrog into the 21st century.
Direct competition is one thing but if various countries such as the US, UK, France, Germany etc spend trillions of dollars and euros on research and technology only to have the Chinese sneak in and steal it from you I am sure there will be lots of unhappy people. These all all countries where China has through multiple means stolen tech from and it has been reported in the media.
The Chinese have also stolen enough technology to make their own Shinkansen bullet trains, missile and radar tech, materials tech, satellite tech telecom tech, etc. and not surprisingly on multiple occasions after copying the tech from foreign companies bankrupted the original patent holders.
Is it really surprising the US is standing up to china now? Only the foolish and naive would think so.
Their first priority is to comply with the Chinese government, though. It has been the national policy of China for the last decades to acquire high tech knowhow from abroad as much and fast as possible. In retrospect, I now think their recent huge efforts to develop domestic processor production capabilities is because the Chinese government did foresee this happening sooner rather than later, not only was afraid of it maybe happening at some point. Perhaps this is only the tip of the iceberg they have predicted. Many in the West don't bother to think about things too much, but the Chinese surely haven't forgotten there will always be a gap between democracies and communisms.
Huawei is simply put an extension of the Chinese communist government used to conduct industrial espionage against various international companies and entities. They are really no different than the Chinese People’s Liberation Army cyber-espionage division.
As you have mentioned the Chinese have a systematic and nationwide program to transfer technology, steal technology, copy technology, buy foreign companies with technology and basically use any and all means necessary including criminal acts all in order to leapfrog into the 21st century.
Direct competition is one thing but if various countries such as the US, UK, France, Germany etc spend trillions of dollars and euros on research and technology only to have the Chinese sneak in and steal it from you I am sure there will be lots of unhappy people. These all all countries where China has through multiple means stolen tech from and it has been reported in the media.
The Chinese have also stolen enough technology to make their own Shinkansen bullet trains, missile and radar tech, materials tech, satellite tech telecom tech, etc. and not surprisingly on multiple occasions after copying the tech from foreign companies bankrupted the original patent holders.
Is it really surprising the US is standing up to china now? Only the foolish and naive would think so.
sykozis
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#5672111 Posted on: 05/23/2019 01:25 AM
So, why is Huawei the only Chinese company being attacked? Why not Xiaomi or Meizu? If every Chinese company is required to participate in epionage, why aren't all Chinese companies on this blacklist?
So, why is Huawei the only Chinese company being attacked? Why not Xiaomi or Meizu? If every Chinese company is required to participate in epionage, why aren't all Chinese companies on this blacklist?
Alessio1989
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#5672115 Posted on: 05/23/2019 01:54 AM
It's just an excuse for political reason, the retarted orange must fill of bullcrap the heads of it's employers..
It's just an excuse for political reason, the retarted orange must fill of bullcrap the heads of it's employers..
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I hope they're doing this because they're actually a national security threat, and not just destroying a company to hit China. This is basically a wrap for Huawei, who as far as I can tell have been trying to comply as much as they can with the U.S. government.