Huawei and SMIC join forces in the US-China chip war

According to information in the South China Morning Post (SCMP) and cited by Russia’s Sputnik news agency, leading technology companies in China are joining forces in a chip-related war between the US and China. .

Tech companies from both the public and private sectors of China are joining forces to standardize the semiconductor market to protect national supply chains in the ongoing trade war between the US and China.

The commission is made up of 90 members, including telecommunications equipment supplier Huawei, chip maker SMIC, semiconductor company HiSilicon, as well as technology giants Tencent Holding, Xiaomi and Alibaba Group Holdings, among other players.

Huawei and SMIC join forces in the US-China chip war

The Ministry of Industry and Information Technology of China (MIIT) said that in order to fulfill the set target, the China Institute of Electronic Standardization (CESI) has proposed plans, which will support and ensure the integrated IC industry healthy development.

Huawei and SMIC join forces in the US-China chip war

China’s rapid progress in microchip technology has surpassed standardized frameworks in chip design, packaging, testing and other standards set by the International Electrical Engineering Commission, CESI added. set out in recent years. The lack of standards makes it difficult to maintain an “orderly industrial environment” due to the rising costs of communication between semiconductor companies and customers.

These efforts come just days after a top official of the Chinese Communist Party vowed to adopt a “nationwide” approach to separate from foreign technology despite challenges from the distance. Foreign technology and sanctions in the trade war.

The announcement comes months after China pledged to spend $ 1.4 trillion on building technologies, including infrastructure, artificial intelligence, 5G, green energy and more, to reduce dependence on major foreign imports.

In a recent move, US President Joe Biden postponed the implementation of an executive order issued in November 2020 under former President Donald Trump until May 27 to reconsider the trade war. between the United States and China, which have blacklisted Chinese companies in recent years, on the grounds of alleged ties with the Communist Party and the Chinese military, to include the two’s bilateral relations. water down to its lowest level in history.

SEMI – a large association of global chipmakers, including Samsung, Intel, Micron Technologies and other players, urged the US President in an open letter offering to hit re-pricing of export restrictions on Chinese companies from the Trump administration.

The letter urged President Biden’s administration to review restrictions on Huawei, SMIC and other Chinese companies and prioritize outstanding commercial licenses or risk damaging innovation. US and forced companies to bear retaliation measures from Beijing.

SEMI said that while the sanctions were a “powerful national security tool”, they created unfairness for US companies because Chinese customers could find alternative suppliers. in other countries.

Steven Weber, professor of political science at UC Berkeley, said that in some areas, especially in the chip sector, President Biden could change policy and lower many of the bans that were put in place. under President Trump to support his strategy.

However, chip analyst at Gartner research firm, Sheng Linghai, said that any changes will not come quickly and Biden must focus on issues for the time being. other.

In a recent speech to the US-China Business Council, Chinese Foreign Minister Wang Yi said: “We should try to restart dialogue, go in the right direction and rebuild mutual trust. in the next phase of Sino-US relations ”.

Under President Donald Trump, the US administration added more than 70 Chinese technology companies to the Entity List in May 2019, citing possible risks to US national security. Other restrictions also applied to Chinese tech companies weeks before President Trump left the White House.

Phan Van Hoa(According to Asiatimes)

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