Huawei has spent billions on a 2-year stockpile of American chips

[mongeese]

What just happened? Huawei has revealed they have spent over $23 billion on stockpiles of “essential components” as a countermeasure to US trade sanctions. The stockpile will last at least eighteen months, and if necessary, could be stretched a further six months. But even with enough raw supplies, Huawei may not be able to weather the storm.

According to industry sources who spoke with the Nikkei Asian Review, Huawei began stockpiling towards the end of 2018. At the time they said they were “shocked or sometimes amused” by the “ungrounded and senseless” allegations leveled against them. Now they’re publicly in panic mode, and justifiably enough as Huawei isn’t allowed to sell to American companies or buy software or hardware designed by them. Thus far the ban has manifested at the consumer level with the restriction (or complete absence) of Android software and other Google services on Huawei smartphones.

However, Huawei sells more than smartphones and it’s their server and networking infrastructure that stands to suffer the most. A big portion of the stockpiled chips are Intel and AMD server processors, and FPGAs from Xilinx. Unfortunately for Huawei, much of the stockpile is probably already out of date. Server processors recently doubled in core count, and PCIe 4.0 is steadily being rolled out. The situation is worse with FPGAs, though: these are extremely specialized processors that are often customized to the client’s needs, an opportunity Huawei has now lost.

Xilinx FPGAs are used in this American F-35 fighter jet. Given the concerns relating to Huawei's trustworthiness, it might make sense to keep these processors away from them.

But that's not all. Huawei hasn’t been able to buy much of its stockpile direct, instead buying from retailers and other third-parties which has translated in a price increase and no support. They won’t be able to problem-solve effectively, get refunded on defective hardware, or get software or infrastructure updates.

As a necessary remedy to US' restrictions, Huawei has renewed its focus on developing its own hardware. Subsidiary HiSilicon is working on developing CPUs, GPUs, FPGAs, modems, and dozens of other specialized chips, but it's easy to assume those won't be ready as drop-in replacements in the short term, otherwise they wouldn’t be stockpiling in the first place.

Permalink to story.

https://www.techspot.com/news/85439-huawei-has-spent-billions-2-year-stockpile-american.html

 

[grumblguts]

https://imgur.com/rj9Vdmg

 

[Nobonita Barua]

That won't really do it. I guess even Huawei knew this all along. IMO this is more of an stop gap measure.
What I am interested in,is this
https://cntechpost.com/2020/05/31/h...and-the-boundaries-of-civilizations-progress/
The move I have predicted, is coming.

 

[Ludak021]

Because world = USA and 300 million customers, not 3 billion customers minus US's 300 million. Sure.

@Nobonita Barua :
Of course, US did that back after WWII, and India and China are doing it now. Several reasons: keep their smart people for one. They had enough of "Edisons" , but they must be able to afford those people. No one is going to sit and work for peanuts if US tech comp. is offering six figures salary.
We shall see.

 

[QuantumPhysics]

Trump's trying to divest from China.

China was already intent on divesting from America. But the reality is, China owns the emerging markets.

 

[toooooot]

They were shocked and amused while breaking the rules. They signed the contracts, violated them probably immediately. Of course they started looking for a way to mitigate he crisis. Like a criminal looking for ways to escape punishment is preparing escape routes, Huawei went this way.
And if it isnt a proof that CCP is gently holding Huawei's ***, I dont know what is.
They are a tool of Mister Winnie the Pooh, they couldn't care less about rules, the only rules is to obey
their masters.

 

[Joewayne]

They were shocked and amused while breaking the rules. They signed the contracts, violated them probably immediately. Of course they started looking for a way to mitigate he crisis. Like a criminal looking for ways to escape punishment is preparing escape routes, Huawei went this way.
And if it isnt a proof that CCP is gently holding Huawei's ***, I dont know what is.
They are a tool of Mister Winnie the Pooh, they couldn't care less about rules, the only rules is to obey
their masters.

They were shocked and amused while breaking the rules. They signed the contracts, violated them probably immediately. Of course they started looking for a way to mitigate he crisis. Like a criminal looking for ways to escape punishment is preparing escape routes, Huawei went this way.
And if it isnt a proof that CCP is gently holding Huawei's ***, I dont know what is.
They are a tool of Mister Winnie the Pooh, they couldn't care less about rules, the only rules is to obey
their masters.

They were shocked and amused while breaking the rules. They signed the contracts, violated them probably immediately. Of course they started looking for a way to mitigate he crisis. Like a criminal looking for ways to escape punishment is preparing escape routes, Huawei went this way.
And if it isnt a proof that CCP is gently holding Huawei's ***, I dont know what is.
They are a tool of Mister Winnie the Pooh, they couldn't care less about rules, the only rules is to obey
their masters.

America First it’s simple if China had been playing fair in trading and not been stealing intellectual property while providing slave labor to international corporations they would still be like India . But instead the Chinese government has played against the international rules and are refusing to compromise on new trade deals so .... Bye Felicia we should roll there government up like we did Libya and let there people re instate something that is a lil less world conquering concerned!

 

[Eldritch]

A tech company stockpiling hardwares to the tune of $23 billions is the technological equivalent of panicked people buying hundreds of roll of toilet paper when the Covid crisis hits.

 

[drjekelmrhyde]

That was pre COVID 19 way of thinking. It could be two years before US chip companies could even get back to mass production.

 

[Nickck]

They were shocked and amused while breaking the rules. They signed the contracts, violated them probably immediately. Of course they started looking for a way to mitigate he crisis. Like a criminal looking for ways to escape punishment is preparing escape routes, Huawei went this way.
And if it isnt a proof that CCP is gently holding Huawei's ***, I dont know what is.
They are a tool of Mister Winnie the Pooh, they couldn't care less about rules, the only rules is to obey
their masters.

Always accusations with ZERO evidence.

 

[vrvly]

Kind of ridiculous after US spying NSA affair. Well, it's not like with the help of China they cannot make come back.

 

[toooooot]

America First it’s simple if China had been playing fair in trading and not been stealing intellectual property while providing slave labor to international corporations they would still be like India . But instead the Chinese government has played against the international rules and are refusing to compromise on new trade deals so .... Bye Felicia we should roll there government up like we did Libya and let there people re instate something that is a lil less world conquering concerned!

All emerging powers steal tech to get more power and wealth for their country. thats nothing new in the world of empires. That's why I like history so much, it goes around.
But Huawei had it coming long way. Do you think it is a coincidence that Huawei was accused of having tight relationship with their government?
I tthin they got cocky. After all, not caught, not a criminal. But then somebody lost those internal documents regarding sales to Iran...
And maintaining the face became became way harder...
I bet they are already working with China's officials, training their workers or hiring directly from CCP spy academy to prevent loss of important documents.

lets say you see your neighbor taking apples from your tree. he sees you, you see him, but you decide not to ruin the relationship, who cares about few apples.Then he takes more, and more. And then one morning you wake up to see he moved the tee to his property! USA waited way to long to retaliate. It was pathetic how long it took.

 

[boss boss]

All emerging powers steal tech to get more power and wealth for their country. thats nothing new in the world of empires. That's why I like history so much, it goes around.
But Huawei had it coming long way. Do you think it is a coincidence that Huawei was accused of having tight relationship with their government?
I tthin they got cocky. After all, not caught, not a criminal. But then somebody lost those internal documents regarding sales to Iran...
And maintaining the face became became way harder...
I bet they are already working with China's officials, training their workers or hiring directly from CCP spy academy to prevent loss of important documents.

lets say you see your neighbor taking apples from your tree. he sees you, you see him, but you decide not to ruin the relationship, who cares about few apples.Then he takes more, and more. And then one morning you wake up to see he moved the tee to his property! USA waited way to long to retaliate. It was pathetic how long it took.

Huawei did not steal the apple tree and plant it in China. Huawei discover its own apple seed after seeing the orchard at USA. It used the seeds and sow its own trees, its own orchard, producing better fruits, producing more fruits, more apples than the one they saw earlier. They continue to make progress and research.
Huawei is not fairly new.
These comments are just racist. None was said of Motorola, HTC or Samsung. But when a strong Chinese company come and challenge, all they said is theft. Apple does not have 5G phones or the 5G telecom capabilities. Yet, they accuse Huawei of spying. The world knows of NSA spying through Edward Snowden, yet remain silent. It is just USA bullying, harassment, and lies.
When USA is failing, losing in the technological war, it resorts to dirty tactics.
It is when a thief calls someone else thief.
China have advanced faster, higher than USA.
It is the USA facebook copying Tencent, It is Amazon copying Alibaba.
It is verizon stealing patents and technology from Huawei.
Huawei will prevail, Huawei have scared the Americans.
Huawei is winning the 5G technological fight, IOT, 5G enabled cars.

 

[Ludak021]

Why would China, or anyone, abide by sanctions posed on Iran by US? Huawei nor China are US or abide and live by US law. Have you noticed how UK follows US decisions and policies? They do so because they want to. Next thing, Trump will force US LNG upon them. What matters is international law. And every big country breaks those from time to time.
Anyway, in this case, Huawei is regarded as China itself, not a huge multi-billion company that it is. Out of 1000 patents that they use, they are accused of stealing how much? No one said. So now the narrative is: they steal user data, US tech, the end. Like no one ever did that before (everyone did that before to best of their possibilities, especially US and UK, they are doing it and everyone know is it, it has been proven)

As for your neighbor and apples analogy, it's not correct. First, they are not neighbors, second, US planted the apple tree in China, third China took some apples, allegedly. China did not go to US to pick apples, US came to China to grow apples. And now they are crying, and being babies about it.

You leave your apples in my yard, you bet I will take one, (not really, I can't eat apples, but you get what I am getting at). If those apples are SO VALUABLE to you. don't just leave them in someones yard. This tells us that there is more to all this than it's being said to the public. But POTUS is creating the optics that China are thieves and blah blah. Ok, so is the US, has been since the forming of the US. It's based (was) on foundations that "what land you can keep is your land" , and it was on foreign continent. They do the same with oil fields now. If they can keep them, you bet they are going to steal oil from them (Iraq, Syria, Afghanistan...)

 

[ooisquad]

To bad Huawei can't buy up chips the way the Chinese Communist Party bought up masks and personal protective equipment leading up to their unleashing of the virus on the world. It's not quite the same, eh?

 

[Ludak021]

Wow, Moon landing was fake too I guess ooisquad?

 

[Angga B]

They have been distorting market in both consumer segment and industrial segment with their non existent business conduct ethical guidelines. It's about time for them to reap what they sow.

 

[Uncle Al]

Yep, they may indeed be SOL, especially with the latest talk of trade embargo's due to the mess in Hong Kong. China seems to have begun an intense effort to not only look stupid, but to follow up on it by acting just as, if not more, stupid.

 

[Ludak021]

It's embargo between US and China, again 300 million people vs everyone else that don't care. The only one that looks stupid in this is US. China is just a persistent Oligarchy of one party, as it has been for a century. And they need nothing from US. On the other hand, US needs EVERYTHING from China.

 

[Alfatawi Mendel]

America First it’s simple if China had been playing fair in trading and not been stealing intellectual property while providing slave labor to international corporations they would still be like India . But instead the Chinese government has played against the international rules and are refusing to compromise on new trade deals so .... Bye Felicia we should roll there government up like we did Libya and let there people re instate something that is a lil less world conquering concerned!

Libya didn't have a full nuclear arsenal.
Hilarious describing China as "world conquering", when the USA has military bases in almost every country in the world.

 

[GeforcerFX]

It's embargo between US and China, again 300 million people vs everyone else that don't care. The only one that looks stupid in this is US. China is just a persistent Oligarchy of one party, as it has been for a century. And they need nothing from US. On the other hand, US needs EVERYTHING from China.

300 million much wealthier people, only around 15% of China's population has the purchasing power that's closer to Western Europe, Canada, USA and Japan, S. Korea when it comes to buying technology. Most of the handhelds Huwaii sells in China are very budget models, which means your lucky if your making $5-10 per handset, then you have Apple selling millions of devices in the USA and Europe and making well over $100 per device (even the budget models. Losing out on the US market for electronics is a huge hit to Huwaii, Apple losing out on China hurts but also leaves the USA market even more open for them.

 

[toooooot]

Huawei did not steal the apple tree and plant it in China. Huawei discover its own apple seed after seeing the orchard at USA. It used the seeds and sow its own trees, its own orchard, producing better fruits, producing more fruits, more apples than the one they saw earlier. They continue to make progress and research.
Huawei is not fairly new.
These comments are just racist. None was said of Motorola, HTC or Samsung. But when a strong Chinese company come and challenge, all they said is theft. Apple does not have 5G phones or the 5G telecom capabilities. Yet, they accuse Huawei of spying. The world knows of NSA spying through Edward Snowden, yet remain silent. It is just USA bullying, harassment, and lies.
When USA is failing, losing in the technological war, it resorts to dirty tactics.
It is when a thief calls someone else thief.
China have advanced faster, higher than USA.
It is the USA facebook copying Tencent, It is Amazon copying Alibaba.
It is verizon stealing patents and technology from Huawei.
Huawei will prevail, Huawei have scared the Americans.
Huawei is winning the 5G technological fight, IOT, 5G enabled cars.

Friend, I have seen posts like this written before. All very polite and well written with excellent grammar and punctuation (something mine are lacking really bad sometimes). There is a feel to the posts purchased by Russian government, I know because I read what people write on Russian websites.
Likewise, I began to get the feel of posts created by the great people of China, working for these comments.
You have created an excellent post, and I admire its structure and overall level of writing. But if you in fact live in China and are paid to do this, which I will not argue (merely point out so that other readers might mark this comment for later, when they come across similarly written posts) you don't believe that.
Chinese companies shamelessly ripped anyone bringing their manufacturing there. The only companies that profited were the giants. Lots of smaller guys lost everything, and couldn't fight because they didnt have enough money for international lawyers fees.
And lets not forget, China is a psychotic oppressing regime not long ago plowing the "field" on Tiananmen square with tanks killing thousands of people who wanted to live like people, not slaves. What you wrote isn't about that regime. You described a great country in your post. The one with rich history great people and an awesome government. Regime of Chine is nothing like that.Murdering Lying and suppressing anything that stands in its way. Chinese people are slaves. Just like Russians were not long ago. You know whats funny? Many of them liked it there. yes some people enjoy the chains. They wanted that illusive protection and security which evaporated when that shitshow fell apart. I feel sorry for Chinese people. Especially those that hate the regime ruling them. Even more those already imprisoned for that very reason. All the Christians, everyone who is being persecuted for just trying to be what a normal person wants to be, do not give up guys. If you know someone like that, BossBoss, tell them to not give up! Tell them to keep believing and fighting! Be it a peaceful protest for which there is incarceration or sharing their ideas with people around them.Dont stop believing, hold on to the right things that will prevail!

 

[Ludak021]

300 million much wealthier people, only around 15% of China's population has the purchasing power that's closer to Western Europe, Canada, USA and Japan, S. Korea when it comes to buying technology. Most of the handhelds Huwaii sells in China are very budget models, which means your lucky if your making $5-10 per handset, then you have Apple selling millions of devices in the USA and Europe and making well over $100 per device (even the budget models. Losing out on the US market for electronics is a huge hit to Huwaii, Apple losing out on China hurts but also leaves the USA market even more open for them.

US citizens mostly buy Apple (made in China), Huawei is not loosing much there. What hurts them is not being able to use google. It hurts google too. For now. You see, it's not US technology, it's Google's. Like SpaceX is not NASA program, it's Elon Musks program. All these companies can up and go elsewhere. USA government doesn't own them. Or owe them. Just like they upped the manufacturing and moved it to China, Vietnam, etc. Trump should thread carefully or some companies will go the way Harley Davidson did.
Also, big numbers mean a lot. Selling billions of cheap phones makes them billions of dollars. I don't know the margins, neither do you. What I know is, everyone wants or needs a phone. And not everyone wants to pay >$800 for one. Mostly US citizens do.

And lets not forget, China is a psychotic oppressing regime not long ago plowing the "field" on Tiananmen square with tanks killing thousands of people who wanted to live like people, not slaves.

and you can't do anything about it. You want a WWIII over that? Sure, but you go in the front, not sit at home and cheer while millions die for war that will ultimately be about USA grabbing Chinese resources and cheap labour will stay. Like in Vietnam. You got Vietnam, you kept the slave labor and poverty, but under US puppet government.
No one (country) will support US in this war endevour.

PS. NO! China IS NOT GOOD! Far from it. It's just the reality that words wont change a thing and war with them will cost millions of lives around the world. Another reality is, looking at countries that got "freedom" and deomcracy thanks to US, they are not better than they were. Like I said, why not fix Vietnam? Libya? Iraq? US and UK just left ruins and migrants that are now in Europe. Thanks?!

 

[toooooot]

Well, I just followed the history of these accounts protecting Huawei, suspciciosly fresh, suspiciously rotten. Gmachine for example, his account was silent and then he goes on a ramp liking the comments supporting Huawei and replying to to few long time members (I guess to look less suspicious).

Admins, are we gonna allow the great CCP its paid workers to add their valuable opinions here? I don't like it. I don't like that whenever there a topic regarding these Chinese companies, silent heroes of CCP, the knights of keyboarding, are creating replies they probably don't believe in but merely paid enough to do it.
At the very least give them Chinese flags on their profile pictures.

You probably can check the comments under other news. They lack the brain to work in a different way. They are polite, they are educated, but they stricture and idea of their comments is always the same. As I said before, I have read so many fake bot comments on Russian websites I know them the second I read them.
Well, Chinese paid comments share similarities especially since the idea always the same: China good, you are wrong.

 

[Nobonita Barua]

Friend, I have seen posts like this written before. All very polite and well written with excellent grammar and punctuation (something mine are lacking really bad sometimes). There is a feel to the posts purchased by Russian government, I know because I read what people write on Russian websites.
Likewise, I began to get the feel of posts created by the great people of China, working for these comments.
You have created an excellent post, and I admire its structure and overall level of writing. But if you in fact live in China and are paid to do this, which I will not argue (merely point out so that other readers might mark this comment for later, when they come across similarly written posts) you don't believe that.
Chinese companies shamelessly ripped anyone bringing their manufacturing there. The only companies that profited were the giants. Lots of smaller guys lost everything, and couldn't fight because they didnt have enough money for international lawyers fees.
And lets not forget, China is a psychotic oppressing regime not long ago plowing the "field" on Tiananmen square with tanks killing thousands of people who wanted to live like people, not slaves. What you wrote isn't about that regime. You described a great country in your post. The one with rich history great people and an awesome government. Regime of Chine is nothing like that.Murdering Lying and suppressing anything that stands in its way. Chinese people are slaves. Just like Russians were not long ago. You know whats funny? Many of them liked it there. yes some people enjoy the chains. They wanted that illusive protection and security which evaporated when that shitshow fell apart. I feel sorry for Chinese people. Especially those that hate the regime ruling them. Even more those already imprisoned for that very reason. All the Christians, everyone who is being persecuted for just trying to be what a normal person wants to be, do not give up guys. If you know someone like that, BossBoss, tell them to not give up! Tell them to keep believing and fighting! Be it a peaceful protest for which there is incarceration or sharing their ideas with people around them.Dont stop believing, hold on to the right things that will prevail!

Very nice script. I take it took long to make this Hollywood script by free people, of free people,. for people , make sure you pay your chosen government for doing their job of giving you internet to post your script.
Why is it that every fake americans, standing on the dead bodies of native peoples, always point fingers to other's history? Is it a distraction method to hide the real history of "free pirates looting others for freedom"? Or is it you are securing your nation's security that actually never existed.
You know, whenever fake americans give me BS of democracy, it remind me of the thug company that looted others,then started to "vote" to choose who is going to be their leader for their "security".
I am a slave to my country, slave of truth,what are you? The freedom pirate? In my country I am slave, in your "country" the country & the government is slave to you I guess? I would rather be a slave then being a th-ug, lo-oter & pirate of freedom. which one you want to be?
You forgot to clear to us those matters. Let us hear it loud & clear