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Huawei Technologies’ Kunpeng 920, a chip designed by subsidiary HiSilicon for data centres and cloud computing gear, is displayed during an unveiling ceremony at the company’s headquarters in Shenzhen in January of last year. Photo: AP
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Inside China Tech: chipping away at Huawei

  • A new US rule threatens to derail Huawei’s advanced semiconductor development efforts
  • It specifically targets the operations of chip design subsidiary HiSilicon
China technology
Bien Perez
Bien Perez
Why you can trust SCMP

Hello, This is Bien Perez from the South China Morning Post’s Technology desk, with a wrap of some of our leading stories this week.

Huawei Technologies, the world’s largest telecommunications equipment supplier, finds itself under renewed pressure after the Trump administration unveiled last week a new rule that would restrict the company’s ability to design its own advanced chips.
The US Commerce Department announced last week a new rule that would “target Huawei’s acquisition of semiconductors that are the direct product of certain US software and technology”.
While Huawei was still evaluating the impact of this US move, “we are confident in finding solutions soon”, said rotating chairman Guo Ping at the company’s global analyst summit held in the southern city of Shenzhen last Monday. He added, however, that “survival is currently the key word for Huawei”.
Washington’s new export control rule could make it the most damaging attack yet against China’s biggest technology company. It would block access for Huawei subsidiary HiSilicon to US chip design software and use of major contract chip makers, led by Taiwan Semiconductor Manufacturing Co.

05:22

Huawei founder on cybersecurity and maintaining key component supply chains under US sanctions

Huawei founder on cybersecurity and maintaining key component supply chains under US sanctions

The new restriction reflects momentum in the US government’s effort to decouple from China’s tech supply chain, as Washington officials and lawmakers raise concern that such ties could threaten America’s national security.

The new US rule, which has a 120-day grace period, expands Washington’s authority to require licences for sales of semiconductors made abroad with US technology to Huawei. It covers only chips designed by HiSilicon and does not cover shipments if these are sent directly to Huawei’s customers. 

Regulators would watch and make any relevant changes to the rule, according to State Department official Christopher Ashley Ford. 

In its statement released on Monday, Huawei described the new rule as not only “arbitrary and pernicious”, but something which would have a serious impact across many industries worldwide.

“In the long run, this will damage the trust and collaboration within the global semiconductor industry,” the company said. 

William Ding Lei, founder and chief executive of NetEase. Photo: Reuters

NetEase CEO wants coding to form part of China’s basic education

China’s lofty ambition to lead the global technology market could receive a much-needed boost once computer programming becomes part of China’s compulsory basic education curriculum, according to the head of the country’s second biggest video games operation.
William Ding Lei, the founder and chief executive of Hangzhou-based NetEase is expected to submit that proposal during the Two Sessions, the annual meetings of the National People’s Congress and the Chinese People’s Political Consultative Conference, which started on Friday. 

He suggested that the country establish a continuous curriculum for coding, from primary to secondary school, and build a resource library to help young learners learn this discipline.

That proposal comes amid China’s goal to take the lead in multiple hi-tech sectors, including artificial intelligence and financial technology, which could drive up the nation’s demand for more software developers and computer engineers. 

The factory floor at Xpeng Motors’ new electric car plant, located in the southern city of Zhaoqing, runs more than 260 industrial robots. Photo: Handout

Alibaba-backed Xpeng gets green light for electric car assembly

Xpeng Motors has received the go-ahead to independently assemble its electric cars, months after it acquired a local car maker, as the start-up ratchets up its efforts to challenge Tesla in China.
The manufacturing licence, granted by the Ministry of Industry and Information Technology, enables Xpeng to soon start large-scale production of its P7 electric sports car at its new highly automated plant in the city of Zhaoqing, in southern Guangdong province.
Production at the factory, which runs more than 260 industrial robots, “is further validation of the strength and robustness of our organisation”, said He Xiaopeng, co-founder, chairman and chief executive of Xpeng, in a statement on Tuesday.

Xpeng, which is backed by e-commerce giant Alibaba, expects to roll out and deliver the first batch of P7 cars from the facility by the end of June, according to the company. Alibaba is the parent company of the Post.

Xpeng’s first production model, the G3 electric sport utility vehicle released in 2018, was previously assembled by contract manufacturer Haima Automobile Co, a subsidiary of state-owned car maker FAW Group Corp.

Its latest move comes at a time when China’s car industry is searching for increased momentum to overcome the challenges brought by the coronavirus pandemic, which has upended sales and manufacturing in the world’s largest car market.

And that is all for this week. Until next time.

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