Tag Archives: Huawei

Qualcomm Wants Permission to Sell Chips to Huawei



The Wall Street Journal reported that Qualcomm Inc. is lobbying the Trump Administration to roll back restrictions on the sale of advanced components to Huawei Technologies. Qualcomm wants to sell chips for Huawei 5G phones.

Qualcomm is telling U.S. policy makers their export ban won’t stop Huawei from obtaining necessary components and just risks handing billions of dollars of Huawei sales to the firm’s overseas competitors, according to a presentation reviewed by The Wall Street Journal that the San Diego-based company has been circulating around Washington.

In May of 2020, the U.S. Department of Commerce unveiled a rule that expands U.S. authority to require licenses for sales to Huawei Technologies of semiconductors made abroad with U.S. technology. The rule greatly expanded the ability of the United States to halt exports to Huawei.

The result of the rule is that Huawei is running out of smartphone chips. The company no longer has the access to the manufacturing it needs to continue making the Mate 40s Krin 9000 processor. As such, supplies of the Mate 40 smartphone will be limited.

According to The Wall Street Journal, Qualcomm is arguing that granting it a license to sell chips to Huawei would generate billions of dollars in sales for Qualcomm and help it fund development of new technologies.

Qualcomm’s lobbying effort comes after a resolution of a patent-rights dispute with Huawei. Qualcomm will receive a $1.8 billion lump-sum payment from Huawei to cover previously unpaid licensing fees. The settlement includes a multiyear agreement to license Qualcomm’s patented technologies for Huawei use.

Based on this, it seems to me that Qualcomm will have a problem if it fails to convince the U.S. government to grant it the license it is seeking. I don’t see how the company could make use of the multiyear agreement with Huawei without having that license.


Huawei is Running Out of Smartphone Chips



Huawei Technologies Inc. is running out of smartphone chips. This was announced by the company at the 2020 Summit of the China Information Technology Association during a speech by Richard Yu, the CEO of Huawei’s consumer business.

Engadget reported that after September 15, 2020, Huawei won’t have access to the manufacturing it needs to continue making the Mate 40’s Kirin 9000 processor. According to Engadget’s summary of Richard Yu’s speech, Chinese chip manufacturers such as SMIC do not currently have the capabilities to make up for the shortfall. As a result, supplies of the Mate 40 would be limited.

In May of 2020, The U.S. Department of Commerce unveiled a rule that expanded U.S. authority to require licenses for sales to Huawei Technologies of semiconductors made abroad with U.S. technology. This new rule enabled the United States to expand its ability to halt exports to Huawei Technologies.

At the time, Reuters reported that the rule also affected Taiwan Semiconductor Manufacturing Co Ltd., which supplied Huawei with chips. According to Engadget, SMIC is two chip generations behind Taiwan Semiconductor Manufacturing Co Ltd., and just started producing a 14nm Kirin chip for Huawei.

The Associated Press reported that Richard Yu said that production of Kirin chips designed by Huawei’s own engineers will stop on September 15, 2020, because the chips are made by contractors that need U.S. manufacturing technology. Huawei lacks the ability to make its own chips.

The date September 15 keeps coming up. It is the same date that the executive order President Trump signed that would ban U.S. transactions with TikTok and WeChat. It is also five days before the endpoint of Microsoft’s discussions with ByteDance, TikTok’s parent company, about Microsoft potentially acquiring TikTok. All of these things happening on the same date cannot possibly be a coincidence.


UK Government to Bar Telecoms from Buying Huawei Equipment



The UK government will bar telecom companies from purchasing new equipment made by China’s Huawei Technologies Co., The Wall Street Journal reported. The telecom companies have until 2027 to remove Huawei technology from their 5G networks.

Senior executives from Vodafone Group PLC and BT Group PLC told a parliamentary committee last week that a five-to-seven-year time frame would be needed to remove Huawei equipment to avoid disruption. But a group of Conservative lawmakers has been pressing the government to remove the equipment at a faster pace.

One thing to consider (as reported by The Wall Street Journal) is that the British telecoms have warned that the deadline to remove Huawei products from their networks could result in blackouts for customers. Personally, I think that’s going to negatively affect people, especially considering how many people are using the internet to connect with family members and to work from home during the coronavirus pandemic.

In May, the U.S. Department of Commerce unveiled a new rule that that expanded U.S. authority to require licenses for sales to Huawei Technologies of semiconductors made abroad with U.S. technology.

The UK government’s decision that requires telecoms to stop buying Huawei equipment comes after the rule made by the United States. According to The Wall Street Journal, the British the U.S. rule has raised questions about the quality of Huawei kit in the future.

The BBC reported that there are other political considerations that may have influenced the UK government to separate its telecom infrastructure from Huawei. According to the BBC, the UK wants to strike a trade deal with the United States. My assumption is that the U.S. might look more favorably upon countries that exclude Huawei than ones that do not.

The BBC also reported that there are growing tensions with China over China’s handling of the coronavirus outbreak and its treatment of Hong Kong (which was once a British colony).


U.S. Blocks Global Chip Supplies to Huawei Technologies



The U.S. Department of Commerce unveiled a new rule that expands U.S. authority to require licenses for sales to Huawei Technologies of semiconductors made abroad with U.S. technology, according to Reuters, who was the first to report this. The new rule will enable the United States to vastly expand its ability to halt exports to Huawei Technologies.

Part of the wording of the Department of Commerce’s rule says:

The Bureau of Industry and Security (BIS) today announced plans to protect U.S. national security by restricting Huawei’s ability to use U.S. technology and software to design and manufacture its semiconductors abroad. This announcement cuts off Huawei’s efforts to undermine U.S. export controls. BIS is amending its longstanding foreign-produced direct product rule and the Entity List to narrowly and strategically target Huawei’s acquisition of semiconductors that are the direct product of certain U.S. software and technology.

The Commerce Department’s rule, effective Friday but with a 120-day grace period, also hits Taiwan Semiconductor Manufacturing Co Ltd, the biggest contract chipmaker and key Huawei supplier, which announced plans to build a U.S.-based plant on Thursday.

According to Reuters, China’s response to this new rule is that Beijing is ready to put U.S. companies on an “unreliable entity list”. The measure includes launching investigations and imposing restrictions on U.S. companies such as Apple Inc., Cisco Systems Inc, Qualcomm Inc, and the suspension of purchases of Boeing Co airplanes.


U.S. Department of Justice and FBI Brought Charges Against Huawei



The U.S. Department of Justice announced that a superseding indictment was returned yesterday in federal court in Brooklyn, New York, charging Huawei Technologies Co. Ltd. (Huawei) the world’s largest telecommunications manufacturer, and two U.S. subsidiaries with conspiracy to violate the Racketeer Influenced and Corrupt Organizations Act (RICO).

Brian A. Benzskowski, Assistant Attorney General of the Justice Department’s Criminal Division; John C. Demers, Assistant Attorney General of the Justice Department’s National Security Division, Richard P. Donoghue, U.S. Attorney for the Eastern District of New York and Christopher A. Wray, Director, FBI, announced the charges.

…As revealed by the government’s independent investigation and review of court filings, the new charges in this case relate to the alleged decades-long efforts by Huawei, and several of its subsidiaries, both in the U.S. and in the People’s Republic of China, to misappropriate intellectual property, including from six U.S. technology companies, in an effort to grow and operate Huawei’s business. The misappropriated intellectual property included trade secret information and copyrighted works, such as source code and user manuals for internet routers, antenna technology and robot testing technology. Huawei, Huawei USA and Futurewei agreed to reinvest the proceeds of this alleged racketeering activity in Huawei’s worldwide business, including in the United States…

According to the Department of Justice, the superseding indictment also adds a charge of conspiracy to steal trade secrets stemming from the China-based company’s alleged long-running practice of using fraud and deception to misappropriate sophisticated technology from U.S. counterparts.

In addition to Huawei, four official and unofficial subsidiaries are also indicted defendants. They include Huawei Device Co. Ltd. (Huawei Device), Huawei Device USA Inc., (Huawei USA), Futurwei Technologies Inc (Futurewei) and Skycom Tech Co. Lt. (Skycom). Defendants also include Huawei’s Chief Financial Officer (CFO) Wanzhou Meng (Meng).


Vodafone to Remove Huawei from European Networks



Vodafone is going to strip Huawei systems out of the core of its European network, according to Financial Times. Doing so will cost €200m as the European telecoms sector moves to adapt to new limits on the use Huawei’s equipment. Financial Times reported that Vodofone Chief executive Nick Read said the process would take five years because of the complexity of removing systems critical to its network.

The Guardian reported that Nick Read said the Huawei equipment replacement program would have “very limited financial impact” on its UK operations as they were already mostly compliant with the new government measures.

In January of 2020, Prime Minister Boris Johnson approved the use of equipment made by “high-risk vendors”, but restricted access to “sensitive core” parts of the network. It is understood that “high-risk vendors” was a reference to Huawei. The UK will exclude “high-risk vendors” from all “safety critical networks” in the UK.

Huawei posted a statement on its Twitter account about the UK’s 5G decision. The statement said:

“Huawei is reassured by the UK government’s confirmation that we can continue working with our customers to keep the 5G roll-out on track. This evidence-based decision will result in a more advanced, more secure and more cost-effective telecoms infrastructure that is fit for the future. It gives the UK access to world-leading technology and ensures a competitive market.”

“We have supplies cutting-edge technology to telecoms operators in the UK for more than 15 years. We will build on this strong track record, supporting our customers as they invest in their 5G networks, boosting economic growth and helping the UK continue to compete globally.”

“We agree a diverse vendor market and fair competition are essential for network reliability and innovation, as well as ensuring consumers have access to the best possible technology.”

Also in January of 2020, the European Union unveiled security guidelines for next generation high-speed wireless networks. Their recommendations don’t specifically call for a ban on Huawei. Instead, its recommendations include blocking high-risk equipment suppliers from “critical and sensitive” parts of the network, including the core, which keeps track of data and authenticates smartphones connecting to cell towers.

That said, individual countries in the EU would be able to decide for themselves what kind of role Huawei will play in their own wireless network infrastructure.


Huawei Sues Verizon for Patent Infringement



In a press release posted today, Huawei announced that it filed patent infringement lawsuits against Verizon in the District Courts for the Eastern and Western Districts of Texas. Huawei is seeking compensation for Verizon’s use of patented technology that is protected by 12 of Huawei’s US patents.

“Verizon’s products and services have benefited from patented technology that Huawei developed over many years of research and development,” said Dr. Song Liuping, Huawei’s Chief Legal Officer.

According to the press release, before filing the lawsuit, Huawei negotiated with Verizon for a significant period of time, during which the company provided a detailed list of patents and factual evidence of Verizon’s use of Huawei patents. The two parties were unable to reach an agreement on license terms.

“We invest heavily in R&D because we want to provide our customers with the best possible telecommunications solutions,” continued Dr. Song. “We share these innovations with the broader industry through license agreements.”

“For years now, we have successfully negotiated patent license agreements with many companies. Unfortunately, when no agreement can be reached, we have no choice but to seek a legal remedy.”

“This is the common practice in the industry. Huawei is simply asking that Verizon respect Huawei’s investment in research and development by either paying for the use of our patents, or refraining from using them in its products and services.”

Verizon responded with a press release of its own. “Huawei’s lawsuit filed overnight, in the very early morning, is nothing more than a PR stunt. The lawsuit is a sneak attack on our company and the entire tech ecosystem. Huawei’s real target is not Verizon; it is any country or company that defies it. The action lacks merit, and we look forward to vigorously defending ourselves.”