In the early hours of June 16, Beijing time, the U.S. Department of Commerce (DOC) changed its ban on U.S. companies doing business with Huawei, allowing them to cooperate on 5G network standards, but only by setting the industry standard. Under the new rules, U.S. companies can disclose and discuss technical details directly with Huawei in specific scenarios, eliminating the need to file a declaration with the U.S. government first.
But this does not mean that the US has softened its stance on blocking Huawei, but that the US will not “let go” at this time by setting the 5G standard.
Last May, the U.S. placed Huawei on its “entity list” that U.S. companies would require a license from the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) to sell or transfer the country’s technology to Huawei. Against this backdrop, U.S. companies aren’t sure what technology or information they can share, causing their engineers to reduce technology communication. Huawei is an unadunted name in 5G standard-setting, fearing it will indirectly give it a bigger say.
The blockade is still going on.
On May 15, 2019 U.S. time, the DOC issued a notice that Huawei was involved in acts contrary to U.S. national security or diplomatic interests and would include Huawei and its subsidiaries in the “entity list.” Institutions on the entity’s list must obtain permission from the U.S. government before they can purchase U.S. technology. The U.S. government also has the right to refuse permission in the national interest.
The upheaval began. U.S. time on May 20, first Google suspended its Huawei-related business, followed by a freeze on supply agreements with Huawei by major U.S. chipmakers. Subsequently, ARM, the UK semiconductor IP provider, announced that it would cease doing business with Huawei and its affiliates. Huawei has suffered a double blockade of “soft” and “hard”.
A year after Lahei”, on May 15, 2020, the DOC has launched a new round of export controls against Huawei, requiring a chip designed by Huawei and its Heath to use U.S.-controlled equipment in the manufacturing process, and companies that require permission from the DOC before delivering chips to Huawei. This led TSMC to suspend accepting Huawei’s new chip orders because of the use of a number of U.S. equipment on the production line.
TSMC, etc. is still confirming with the U.S. government to see if it is possible to continue to replace Huawei’s foundry chip . . . Vision China
The Announcement by the U.S. Commerce Department could put Huawei’s $123 billion-a-year business in jeopardy, the Associated Press reported. According to the Wall Street Journal, Huawei’s Hess Semiconductor has become the largest supplier of system chips in China, but the fabless semiconductor company does not have its own production line and relies instead on foundry companies such as TSMC to produce chips. Huawei may transfer some of its orders to SMIC, but the latter technology still lags behind companies such as TSMC and Samsung. Over the past two decades, Beijing has spent billions of dollars to create China’s own semiconductor industry, according to the Associated Press. But SMIC, China’s biggest producer, is currently only able to make chips that lag two generations behind TSMC.
“This confusion stems from the latest physical inventory in May 2019 that inadvertently excluded U.S. companies from the technical standards dialogue and put them at a strategic disadvantage,” said Naomi Wilson, senior asia policy director at the Information Technology Industry Council (ITIC).
On May 20, 2019, the DOC issued Huawei a 90-day Temporary General General License (TGL) that allows U.S. companies to engage with Huawei in connection with 5G standards within the International Standards Organization. However, when the DOC issued a second 90-day temporary general purpose license, 46 new Huawei affiliates entered the “entity list” restricting U.S. companies, individuals and Huawei from sharing information about the development of the 5G standard.
As early as last month, six U.S. senators wrote to the DOC, State Department, Defense And Energy Secretary asking them to enact rules as soon as possible to ensure that the United States is not subject to physical lists of participation in 5G standardsetting.
Announcing the new rules, the DOC noted that U.S. participation in standard-setting “affects the future of 5G, self-driving cars, artificial intelligence and other cutting-edge technologies.” “In the telecommunications industry, 5G networks will support devices that travel from high-speed video to self-driving cars.
Currently, the main body that sets international 5G standards is 3GPP. It is reported that 3GPP meets every few months to discuss which technologies should be incorporated into the final 5G standard. In June 2018, 3GPP completed the first 5G standard Release 15 freeze and is currently discussing release 16, focusing on vertical applications such as car networking and industrial Internet.
Huawei is a company they can’t get around in the development of 5G standards. A march by market research firm Strategy Analytics found that while there are more than 600 member companies in 3GPP, the 5G standardization process is actually led by some of the leading market players. So far, the 13 companies studied contributed more than 78 percent of 5G-related reports and led 77 percent of 5G-related work and learning projects, according to the report. The top 5 companies in the 3GPP 5G standard event are Huawei, Ericsson, Nokia, Qualcomm and China Mobile.
“Based on our assessment, leading network infrastructure providers Huawei, Ericsson and Nokia contribute more to the 5G standard than other research companies,” said Sue Rudd, Director of Network Services at Strategy Analytics Network and Services. Huawei leads the way in its overall contribution to the end-to-end 5G standard. “
The formation of 5G technical standards has been hampered by the Sino-US game. If you don’t talk about U.S. companies and Huawei, which have been hurt as a result, the NEW DOC rules “wrongy” maintain the unity of global standards.
Yang Guang, director of strategy for Strategy for Strategy analytics wireless carriers, said there had been concerns that technological competition between china and the US could lead to a split in the global standards system, and that China and the United States could now participate in standardization work in the same organization and work together to contribute to technical standards, helping to maintain the unity of global standards and avoid fragmentation of the industrial chain.