> 18 months stockpile of essential chips
Huawei builds up 2-year reserve of 'most important' US chips
“Huawei's stockpiling efforts focus on central processors made by Intel for use in servers and programmable chips from its peer Xilinx, the sources said. These are the "most essential components" for the company's base station business and emerging cloud business, and it has enough inventory to last between one and a half and two years, they added.”
This heavy-handed tactic can only have focussed and redoubled Chinese initiatives on high-tech self-reliance. If the USA had only but spoken softly while at the same time reminding everyone subtly about the big stick it carries then it may have paradoxically achieved a better outcome. Between having Meng Wanzhou arrested, fining ZTE $1.4 *billion*, and threatening to cut Huawei off from fundamental tech (and thus essentially crippling it) the USA has done in broad daylight what it should have done in the shadows. Either the USA is prepared to break Huawei, or it isn't. Threatening it without destroying it will only serve to make Huawei and the broader Chinese high-tech scene much more self-reliant which will grow them from a formidable adversary to an implacable one. Expect 10nm tech followed by 7nm chip tech in shortish (measured in tech terms) order.
If the USA were truly to restrict ARM licensees, for instance, that could trigger a full on cold war. But either the USA is prepared to trigger a new cold war or it is not. Which is it? Dithering will only backfire on them.
Biting the hand that feeds IT
