by N. Peter Kramer
US telecom associations warned that small operators in the country are paralysed by the law requiring them to replace Huawei and ZTE kit in their networks . The associations urged the government to allocate money to help operators comply with the law, signed by President Trump in March, arguing they do not have the resources to do it alone. They are seeking a $2 billion reimbursement programme for replacement kit. Congress originally estimated $1 billion would be needed to cover the costs.
The request by the telecom associations follows an earlier call for more federal funding from The Federal Communications Commission (FCC) chairman Ajit Pai, who said it was ‘essential to successfully transition communications networks…to infrastructure provided by more trusted vendors’.
Last week the US Department of Commerce cracked down on Huawei’s access to components featuring domestic software and technology made outside China. Analysts believe that the new US regime makes it difficult for any foundry in the world to avoid the impact of this. Huawei and its affiliates are stopped to buying computer chips that have been made or designed with US equipment. Unless companies that wish to manufacture these chips to Huawei’s design with US tools have succeeded in applying for a licence.
US machines are used by about 40 percent of the world’s chipmakers while software is used by 85 percent. It would be almost impossible to find a fabrication plant that could still work with Huawei. Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker currently makes the bulk of Hi-Silicon, Huawei’s semi-conductor affiliate and China’s largest chip design company, that goes into Huawei smartphones and some of its networking gear.
The ‘technology cold war’ between the US and China goes on. Interesting to read that, in the meantime, China Unicom and Chinese technology giant ZTE signed a strategic agreement to develop 6G (!) technologies, with plans to steer development of the concept by exploring technical trends and standards. Progress in technological development seems unstoppable. At least in China…
