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Ban on Huawei may weaken the global competitiveness of US chip suppliers

SemiMediaEdit
September 11, 2020

According to Taiwan media reports, in response to the US Department of Commerce's restrictions on Huawei, the Semiconductor Industry Association (SIA) recently pointed out in a report submitted to the US Department of Commerce that more than 73% of US chips can be replaced by products from other countries.

SIA pointed out that prohibiting Huawei from purchasing chips from US chip manufacturers will not only greatly reduce the revenue of US chip manufacturers, but also reduce the R&D budgets of US industry players for reinvestment. With the gradual weakening of competitiveness, the global market share of US semiconductor players may gradually decline.

SIA emphasized that the Chinese market is the fastest growing in the world and one of the largest export markets for the US semiconductor industry, with annual transactions accounting for nearly one-third of the total revenue of US semiconductor manufacturers. The large-scale export control sanctions imposed on Chinese companies may shrink the U.S. manufacturer's sales by as much as 37%, which will also greatly reduce the global market share by about 18%. Therefore, the ban will cause huge damage to the US semiconductor industry in the long run.

In addition, industry insiders pointed out that the ban will have an irreversible impact on the global integration of the semiconductor industry and may affect the structure of the global semiconductor industry in the next 5 to 10 years.

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