5g mobile phone networks and the export of civilian technology that will enable military use, will be topics of discussion by the United States and Japan, according to a Yomiuri newspaper report on Saturday. The Newspaper alluded that on Friday, the Donald Trump led administration in the US, moved to block global chip supplies to Chinese 5G equipment giant Huawei Technologies .
The United States has blacklisted Huawei, saying the company’s 5G equipment could provide a back door for Chinese government espionage. Huawei, the world’s largest telecom equipment maker, has denied this claim.
The U.S. government has also discouraged other countries from using Huawei’s gear to build their 5G mobile phone networks as part of a larger battle for global technological dominance between the world’s two largest economies.
Japan’s government has decided to effectively exclude Huawei and rival Chinese telcom equipment maker ZTE Corp from public procurement, and the country’s top three telcos have followed suit.
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On Friday, TSMC— the world’s largest chip foundry and one of the only foundries that can handle the manufacturing of the most advanced chips announced that the Taiwanese company will invest and launch a major, $12 billion factory in Arizona. A media release says the factory will be capable of producing the world’s most advanced 5-nanometer chips when it launches in a couple of years. The announcement came after weeks of debate in Washington aimed at cutting off TSMC’s ability to build chips for mainland Chinese companies like Huawei — a move that TSMC argued would dramatically hurt its profitability and ability to invest in further R&D.
This morning came news that Taiwanese hardware assembly company, Foxconn’s profits dived 90% due to COVID-19 and declining smartphone shipments. Foxconn has been caught in the smoldering U.S.-China trade conflict, and even attempted at one point to build its own $10 billion manufacturing facility in Wisconsin, however that plan was set back by US President Donald Trump.