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ARM cuts ties with Huawei, threatening future chip designs
- Thread starter Deleted member 15428
- Start date
Not a good week for Huawei. I would be the one to bake a cake for the company retrospective meeting.
Without chips it's the end of their smartphone/tablets business, no question.
Is there anything stopping Huawei/China from investing in their own chips?
Someone put it best when they said that eventually, American companies that set up shop in China will be the ones that struggle. Trump looking simply at an import stance is missing the entire picture.
This is just going to continue to escalate isn't it? I always thought the interconnectedness of technology and world economies would save us from this sort of thing, but I guess I didn't count on a demagogue being voted President of the USA.
Well, designing chips from the ground up is very, very difficult. That's why almost everyone licenses ARM's technology.
They make a base that if you want you can modify.
Foreign companies in China already struggle a lot because of how pro-local the regulations are. Of course we're going to see many companies that rely on Chinese labour now complaining, but Trump is just going to say move your business elsewhere.
Trump is truly doing his best to destroy the world economy, beyond US borders. This is downright fascist. The US cannot decide how companies do business.
I'm sure this won't lead to any kind of retaliation from China. US single-handedly dictating which companies may or may not do bussiness
I mean they have enough money and backing from the Chinese government to do it but the time it takes is key. Designing a chip, setting up factories / finding partners that produce said chips for you. This could take years all while losing the huge market share they gained. Kind of questionable if one could pull off a comeback under these circumstances.
There are a lot of US companies that set up shop in China. The figures that they make over there are more than what they import back home, and that is something that is accounted for outside imports.
It reminds me of when they were stupid enough to use the nuclear option of getting Iran off Swift and countries then started trading in oil outside the Dollar, or through gold backed securities. Insane that a president could be so short sighted.
Like 99% of the smartphone business operates with ARM SoCs, if not the 100%. ARM has a de-facto monopoly. If you want to build an smartphone, you have to pay the license even if later you customise the design to meet your own needs.
They can design their own SoCs based on their own technology, but it's not realistic. It takes a fuckton on R&D money and years in time. It's the same reason only AMD and Intel survive in Desktop PCs.
China has the fabrics and manufacturing capabilities, yes, but all the designs and R&D are Western.
It's going to be the time factor more than anything else, having to start from scratch would set them back years, and the first chips produced through such an independent effort would almost certainly not match the perfomance/power efficiency of the chips competitors are using putting them at a big disadvantage in the marketplace.
Getting past this hurdle would require a mammoth state subsidy as their existing smartphone business would almost certianly die during the above and they'd need to rebuild again from the ground up from a new base.
PRC is actively doing this type of stuff with things they don't want to export. Once you try to sell it elsewhere it gets harder.
Huawei by itself would not be enough to back something new when ARMs are in everything. They could hypothetically stand a chance if they used some other well known thing, like the recent open source processors, but it would still be a giant gamble.
US companies are in China because of cheap labor and an insane population whose spending is on the way up. If there is a retaliation, those companies will lose the most. There is also the question of whether or not you move your base of operations to somewhere else........one lady who does sea food said that she was thinking of moving base from Boston to Canada but cannot do so because such a move is gambling that the trade war is long term. What if it is not? Then you have spent a huge amount on a different supply chain when staying put and riding the storm would have been better.
All these trade wars benefit no one.
It doesn't make a lot of sense to be beholden to ARM in the long run, especially if one of your telecoms can take a blow like this. Huawei spends about the same on R&D as Intel from what I gathered, it doesn't seem like an impossible gap to bridge, just one that would require state backing because the business case isn't there.
People are really buying the propaganda. Nixon would be so proud.
Make no mistake, they just wanted to get a future competitor out of the way.
It's looking bad for all non-American smartphone businesses. If America can just arbitrarily destroy your entire business for no reason like this, that's terrifying.
Its OK, in 3 months Huawei announce their own chip named LEG which will have pretty much the same performance as the previously used ARM chips!
Sort of /s
Sort of /s
100% this. US just wants exclusivity in their spying and spying equipment.
Those countries have about a tenth of the production capacity and almost none of the know how to replace China.
I mean, China can take Apple out of business just like the US can take out Huawei. They just aren't so dumb to do so without a reason.
I'd rather neither spy on me. But allowing one and denying the other seems a bit.....hypocritical. If it's ok for the US to spy on us (NON-US citizen here) how can the US cry wolf about other countries spying on me?
It's the same shit used in the same way. You're just being drawn into patriotic propaganda. Like your grandfather in the 60's.
