After the United States tightened sanctions against Huawei and in fact banned the production of single-chip Kirin platforms on equipment using American technologies, there has been much speculation about the possible consequences of such restrictions. Of course, on Huawei will not be easy, but the United States will suffer, it became clear from the words of top manager of Huawei before Bloomberg and CNN.
Andy Purdy, chief security officer at Huawei’s North American division, said the company would survive the sanctions and eventually adapt to them, but ordinary Americans would have trouble working.
Asked about survival and loss of income, Purdy noted that 40,000 to 50,000 Huawei employees and US companies working with the Chinese company could lose their jobs.
In addition, another 300 US companies doing business with Huawei will suffer from sanctions and a response from the Chinese manufacturer. The impact can be either weak (such as a reduction in revenue) or severe (a sharp drop in income and redundancies).
Meanwhile, US companies producing equipment for semiconductor giants such as TSMC have already expressed concern about the situation. The SEMI association, which brings together suppliers to the microelectronics industry, said the plan against Huawei “stifles the pace of further investment and innovation” in the industry.
And another example: nine US trade associations wrote to US Secretary of Commerce Wilbur Ross that new sanctions against Huawei were detrimental to “the semiconductor industry, its global supply chain and the wider technology sector.”
A recent report by the Boston Consulting Group states that “the strength of the semiconductor industry is critical to the global competitiveness and national security of the United States.”
According to forecasts, if the United States continues to comply with current restrictions for the next three to five years, the income of American companies will fall by 16%. If the United States completely bans chipmakers from working with Chinese companies, revenues will fall by 37%. Such a huge loss will force US companies to reduce investment in R&D and capital expenditures, which will slow innovation in the United States.
According to BCG estimates, this loss will also force companies to cut 15,000 to 40,000 highly skilled jobs in the US semiconductor industry. Thus, a total of up to 100,000 Americans could lose their jobs.