On January 20th, a new US Administration took office in the midst of a global pandemic, economic crisis and deteriorated Sino-US trade & security relations. During the Trump Administration, the tech industry became the epicenter of the trade war as US and China quickly escalated their exchange of tit-for-tat tariffs and bans. What will change under a Biden Administration if anything?
On December 18th, 2020, SMIC (Semiconductor Manufacturing International Company), China’s largest foundry, was added to the Bureau of Industry and Security’s (BIS) Entity List. This was not a surprising move by the US Department of Commerce given the increasing stringency and aggressiveness of the Trump Administration’s tech trade policy toward China over the last couple of years, especially with the advent of the Coronavirus Pandemic. Besides, Secretary Wilbur Ross indicated in September that SMIC would likely join Huawei on the BIS’s Entity List. What are the implications on the semiconductor industry and the future of 5G?
The US Department of Commerce recently amended its foreign-produced direct product rule (FPDP) and Entity List to include HiSilicon, Huawei’s semiconductor design subsidiary. This action has been widely deemed an escalation of the US government’s “war on Huawei. In the broader context of the US sanction on Chinese tech firms, the addendum applies a consistency of “national security and foreign policy purpose” to HiSilicon.
We have come a long way in a short time since COVID-19 emerged from Wuhan, China late last year. The virus has stealthily yet rapidly evolved from a provincial epidemic to a pandemic that is suffocating the largest and the smallest of economies around the globe.
While the White House has touted a major victory in the trade war with China with the signing of a so-called “Phase One” deal, it was difficult not to notice the very visible absence of Chinese President Xi Jinping himself. Instead, the Trump Administration received a congratulatory letter from President Trump’s Chinese counterpart read by Vice Premier Liu He, a level-three member of the Chinese Politburo.
The global race for 5G is on with operators in advanced markets such as the US, South Korea leading the way with the first deployments of 5G networks in their respective markets. Given all the excitement and hype that has shrouded 5G over the last couple of years, telecom operators around the world are under pressure to jump on the 5G bandwagon as governments push to position their economies for the digital era. Especially for the U.S. and China, 5G has become a strategic economic imperative that both countries believe will determine the economy and doctrine that will lead in our digital future. But what does the 5G race mean for the emerging and developing markets? Do operators in these markets have the opportunity to rethink the network to enable new economic possibilities in the era of 5G?
The big story yesterday afternoon was Tim Cook’s surprise letter to investors announcing that Apple’s Q1 2019 revenue would come in far below the $89 to $93 billion guidance that it issued back on November 1st of 2018. Tim rattled off numerous factors that promoted Apple to issue a revenue warning one month prior their first earnings call of 2019. The most prominent factor – China.