The Trump administration, not losing a beat during the pandemic, has arranged to close off a key supplier to Huawei's manufacturing plants in China. The key source of specialty chips, Taiwan Semiconductor Manufacturing Co., the world's largest contract-chip manufacturer, will no longer be available to Huawei as the U.S. tightens control of all things in the realm of 5G to prevent Beijing from enlisting countries around the world to install their systems. The US contends that the 5G networks would be under the control of the Chinese government and compromise the internal security operations of western allies.
Eric Xu, chairman of the company, says he believes Beijing will respond in some manner to this latest move by the Trump administration. While they have options in China and South Korea, the company contends that this move could upend the entire technological ecosystem. Huawei is a company that reported $121 billion in revenue with a net of $8.8 billion. An increase in sales spanned continents as markets were continuing to be developed not just at home, but in the Middle East and Europe. Chief executive and founder, Ren Zhenfei said that the company plans to invest $20 billion in R & D this year, more than double its net income for 2019.
So, watch out WAshington, here come China(where a mask, please).
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