The US plans to significantly complicate the life of Chinese electronics manufacturers

According to current US sanctions, international companies can’t cooperate with HUAWEI, in the production chains of which more than 25% of American technologies are used. During the new phase of the trade war with China, the United States plans to lower this threshold, significantly complicating the lives of companies from the Middle Kingdom.

Reportedly, US authorities want to limit access by HUAWEI and other Chinese companies to products that use at least 10% of US technology. According to some reports, this change may be adopted on January 17, 2020.

Of particular concern to such measures is the Taiwanese company TSMC. The fact is that in the production of 14-nm chips it uses more than 15% of American components. Consequently, she will not be able to provide her services in full. Such measures force TSMC to transfer as many capacities as possible to a more modern 7-nm process technology, which fits into the allotted framework of ten percent.

To avoid problems with the United States, HUAWEI-owned semiconductor manufacturer HiSilicon is also actively moving its chips to modern 7 and 5 nm processes. Thus, US sanctions, although complicating the lives of HUAWEI and other companies, are also pushing them to develop new solutions without using American technology.

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