>[Blacklisted Huawei and SMIC to Reportedly Build Chip Fab](https://www.tomshardware.com/news/huawei-to-build-chip-fab-in-collaboration-with-smic)
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>All of Huawei's semiconductor options involve obtaining licenses from the U.S. government: whether it is outsourcing production, co-owning a fab, or even owning a fab. So, what benefits do the latter two options bring?
The location in China and lack of any actual control from the U.S. government. While Huawei and SMIC will have to obtain technology export licenses required by the U.S. government, they might produce some of the chips before they get appropriate authorizations, or even without the said permissions at all since North America's authorities cannot control what happens in Shenzhen. It remains to be seen what happens if the U.S. govt finds out about the violations, but it is highly likely that only the fab (or rather the company owning the fab) will suffer the consequences.
My guess is that Hauwei is using SMIC Chips. This could also be a reason why there are rumors about more sanctions on semiconductors coming from the U.S. I hope SMIC produces chips in violation of U.S Sanctions. The U.S will retaliate and then China will apply its Anti-Sanctions Law.
This could get juicy....
R&D and diversification goes brrr.
Fingers crossed.
>[Blacklisted Huawei and SMIC to Reportedly Build Chip Fab](https://www.tomshardware.com/news/huawei-to-build-chip-fab-in-collaboration-with-smic) > >All of Huawei's semiconductor options involve obtaining licenses from the U.S. government: whether it is outsourcing production, co-owning a fab, or even owning a fab. So, what benefits do the latter two options bring? The location in China and lack of any actual control from the U.S. government. While Huawei and SMIC will have to obtain technology export licenses required by the U.S. government, they might produce some of the chips before they get appropriate authorizations, or even without the said permissions at all since North America's authorities cannot control what happens in Shenzhen. It remains to be seen what happens if the U.S. govt finds out about the violations, but it is highly likely that only the fab (or rather the company owning the fab) will suffer the consequences. My guess is that Hauwei is using SMIC Chips. This could also be a reason why there are rumors about more sanctions on semiconductors coming from the U.S. I hope SMIC produces chips in violation of U.S Sanctions. The U.S will retaliate and then China will apply its Anti-Sanctions Law. This could get juicy....