Changing tides for China’s semiconductor ecosystem

China’s chip industry set for deep pain from US export controls | Financial Times

Two years after the US hit Huawei with harsh sanctions, the Chinese technology group’s revenue has dropped, it has lost its leadership position in network equipment and smartphones, and its founder has told staff that the company’s survival is at stake.

Now, China’s entire chip industry is bracing for similar pain as Washington applies the tools tested on Huawei much more broadly.

Paul Triolo, a China and technology expert at the Albright Stonebridge consultancy, said: “There will be many losers as the tsunami of change unleashed by the new rules washes over the semiconductor and associated industries.”

The entire write up is worth reading; basically, it impacts the Chinese semiconductor industry broadly (including the staffing issues and broad components used in the finished products). I keep track of these events, because it is critical to ensure a clear understanding of the downstream effects. For example, if you set up cloud computing platforms on any of the big-tech companies, and they are forced to leave the country or block the resources due to geopolitical tensions (or launching a competing product), your entire business (or computational issues) are at risk. Geopolitics are difficult to predict, but institutional stability is paramount for any application of AI (especially healthcare). You can’t stare at blank screens if the company decides to to go beserk.

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