The current crisis affecting the semiconductor sector will not be resolved in the short or medium term. There are already several voices that replicate the alerts of the maintenance of this imbroglio that conditions the production of the most varied products, from smartphones to the new PS5.
We now add the voice of Huawei that points the blame for the United States of America the blame for the lack of components. The statements were made during the Chinese manufacturer’s Global Analyst Summit 2021, adding to the current quarrel.
Washington’s actions sparked panic in the industry, Huawei accuses
Tough words were spoken by Eric Xu, Huawei’s Rotating Chairman. The executive accused the United States of causing an unrestrained demand for components following the sanctions and blockages imposed on Shenzen’s technology.
“Because of the US sanctions against Huawei we saw a wave of purchases motivated by the fear among large global companies that accumulated components. Especially Chinese companies. In the past, companies accumulated only the stock necessary to secure six months of inventory. Now, this trend has been stopped in the whole system “, points out Eric Xu in statements collected by Nikkei Asia.
The United States of America has put Huawei, as well as other Chinese companies, on a black list, depriving them of access to American technology. Likewise, they also prevented the development of commercial relations with several American companies. The restrictions were based on concerns about US national security.
Huawei restrictions were tightened by the Biden administration
The new American executive was seen as a hope for easing tensions between China and the United States. However, in assuming his duties, the new president and his administration came to aggravate, in several cases, Trump’s restrictions.
This stance aroused new criticism from Beijing, stating that the United States of America is not to be trusted, as Bloomberg then said. Indeed, relations between both countries are more strained than ever.
Eric Xu’s criticisms came before the White House made known its effort to solve the problem of the shortage of chips and other components. The American executive is studying the problem with a view to obtaining answers.
Washington tries to find answers to component shortages
Asked to contribute to the debate, those responsible for large European and Asian companies meet virtually in Washington to discuss the issue at hand. These include names from the automotive industry such as and from technology such as General Motors, Ford, Google, Intel, Taiwan Semiconductor Manufacturing Co., Samsung Electronics, and NXP.
Nevertheless, White House officials have already acknowledged that such a problem will not be resolved in the short or medium term.
For Eric Xu, the sanctions on Huawei ended up harming not only the company, but also the relationship of trust that existed in the global chain of suppliers of components and semiconductors. It motivated a wave of large-scale purchases, motivated by panic, for which suppliers were not prepared. Now, the entire supply sector is shaky.
In summary, this framework has led to an increase in the price of components and, consequently, of the electronic equipment that arrives in stores. In other words, it is the consumer who is harmed.
Local production and reduction of external technological dependence
Huawei’s rotating president assumes that the company will continue to be blacklisted in the U.S. As such, it will act to circumvent these blockages, reinforcing local production and creating new supply channels, having to reinforce the infrastructure in China.
This same solution is being followed by several companies. New semiconductor manufacturers are being formed and, although they may take a long time to start producing, they will be able to mitigate these shortage problems.
The same formula is defended by Joe Biden, who wants to make the United States an independent and self-sustaining technological center. The president made known his bold vision for a reinvigorated North American sector of semi-drivers and not dependent on China or other Asian nations.
Finally, Europe (EU) also wants to become a major producer of processors, chips and other semi-conductors. Like advanced to 4gnews, by 2030 Europe wants to be responsible for 20% of the world production of semiconductors.
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