Huawei sells Honor over US surveillance charges. The essence of the conflict and prospects

Where did the accusations of spying on users come from?

In 2018, the US authorities accused Huawei of industrial

espionage and the introduction of bookmarks in telecommunications equipment.

The US Department of Justice has formally charged Huaweiaccused of industrial espionage, banking fraud, violation of sanctions against Iran and obstruction of justice. In total, there are 23 points in the indictment, the company is accused of trying to steal technology from American T-Mobile in 2012.

According to the indictment, Huawei in 2012A year ago, it began a coordinated effort to steal information about the robot that T-Mobile uses to check phones. While trying to create their own robot, Huawei technicians allegedly violated confidentiality and non-disclosure agreements with T-Mobile, they secretly photographed the robot, measured it and even kidnapped part of it.

Matthew Whitaker, Acting U.S. Attorney General

When T-Mobile discovered the theft and threatenedto sue, Huawei claimed that it had nothing to do with the theft, and the crime was allegedly committed by employees of T-Mobile itself. In 2014, the American company went to court, the parties settled the dispute back in 2017, Reuters notes.

The FBI also receivedinternal emails in which Huawei management offered its employees various bonuses for information about technologies from other companies around the world.

How did the conflict develop?

  • May 10, 2019 - duties on certain categories of goods are raised, China's losses are estimated at $ 200 billion.
  • May 16, 2019 - Huawei is blacklisted. The Company is prohibited from purchasing US hardware and software without permission from the US government. The resolution comes into force in 90 days - on August 19.
  • May 17, 2019 - Toshiba and Panasonic join the boycott.
  • May 19, 2019 - Google, Microsoft, Intel, Qualcomm, SD Association announced the termination of cooperation with Huawei.
  • May 22-27, 2019 - ARM, Wi-Fi Alliance, JEDEC, SDA, AMD, PCIe join the Chinese company's trade blockade.

The last round of sanctions was announced at the end of August 2020. Huawei has now been banned from purchasing third-party chips created using American technology.

The State Department clarified that it would interfereChinese company to "bypass American law." Probably, we are talking about an agreement between Huawei and Qualcomm, according to which the Chinese company could use the technology under license. The media then reported that technology licensing was not subject to US sanctions.

Although we have restricted access to Americantechnologies for Huawei, the company itself and its affiliates have tried to get access to American technology through third parties in a way that undermines US national security and foreign policy interests.

Wilbur Ross, U.S. Secretary of Commerce

How will US sanctions affect the production of equipment?

  • ARM replacement

Due to the termination of cooperation with ARM on the Kirin processors of a subsidiary of HiSilicon Technologies, in fact, an end is put. Huawei now has two options for developing its own SoCs.

MIPS - a processor based on this technologyLoongson with Godson computing cores used in finished products in the domestic market. Supplied to the military and government agencies of China. These processors are reliable, quickly and efficiently cope with their tasks. The emergence of new chips on the European market may make competitors regret the announced boycott.

There is little information about the RISC-V technology, for the last 3 years Transmeta and Western Digital have been participating in its development, Huawei is showing interest.

  • Snapdragon or MediaTek?

Huawei may have to choose between processor manufacturers. Snapdragon is already trying to get permission to cooperate with the Chinese company.

If there is no cooperation with Snapdragonit turns out, then the only adequate option would be chips from MediaTek. The relatively new Dimensity 1000 and 1000+ operate at medium to high levels, according to user ratings. The cost of their purchase will be significantly lower than the price of American chips.

  • SD memory cards

The company announced it was creating its own memory cards back in October 2018. The maximum volume is 256 GB, the declared data transfer speed is 90 MB per second.

  • Own OS?

Hongmeng is its own operating system, possibly multi-platform. Tested since 2012. Google has denied Huawei access to Android Q, Microsoft licenses its OS.

Therefore, talk about HarmonyOS has been going on for a long time, but the system is still not ready. It was already expected to be seen on the company's flagship devices, but so far the situation is open to question.

Who will get Honor?

Huawei's consumer business has been under tremendous pressure lately. This is due to the constant unavailability of the technical elements necessary for our mobile phone business.

Company statement

The buyer of all the assets of Honor was the ChineseShenzhen Zhixin New Information Technology. It has united more than 30 agents and dealers, including firms supported by the government of the Chinese city of Shenzhen. The financial terms of the deal were not disclosed.

After the completion of the transaction, Huawei will not own shares or participate in the management and decision-making in the new company Honor, the report said.

Huawei said it hopes the deal should help Honor-related merchants and suppliers "get through this difficult time."

Previously, sources reported that created aftersales The joint venture intends to go public in three years, and the deal was made on the condition that the new company can buy and use 5G chips. According to them, it was about the sale of the division for $ 15.2 billion.

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