Instead of ‘leveling up’ the government is leveling down and we urge them to reconsider. It threatens to move Britain into the digital slow lane, push up bills and deepen the digital divide. After over a year of uncertainty about how forcefully the entity list restrictions would be enforced, the FDPR represented a significant escalation.Ī spokesman for Huawei UK said: “This disappointing decision is bad news for anyone in the UK with a mobile phone. ![]() When, last May, the country placed Huawei on its entity list – which meant no US firm could sell to it without a special licence – it clearly wanted to trigger a domino effect, but only Australia introduced an outright ban on Huawei kit in 5G. This attempt has been only partially successful so far. This shows how determined the US administration is to push its allies to bar Huawei. ![]() The NCSC’s technical director, Ian Levy, said: “We think that Huawei products that are adapted to cope with the FDPR change are likely to suffer more security and reliability problems because of the massive engineering challenge ahead of them, and it will be harder for us to be confident in their use within our mitigation strategy.” He said it could be harder to get the same level of information about the new products or to understand the new tool chains which would have to replace the well-understood global ones in current use. The UK National Cyber Security Centre (NCSC) said this was a “game-changer” because “no-one, anywhere in the world, can send Huawei-designed chips to Huawei if US technology was used in the design tools or manufacturing process”. The official reason for the change of heart is that, since the original decision, the USA has introduced the FDPR (Foreign-Produced Direct Product Rule) barring Huawei from using chips made with US equipment, software or design expertise. BT and Vodafone both have significant amounts of Huawei RAN equipment and Three UK had planned to procure all its 5G network from the vendor, to replace its 4G supplier, Samsung. Meanwhile, the UK has given its operators until 2027 to replace Huawei equipment in their 5G networks (see lead item), making a U-turn on its previous decision to allow 35% of a 5G or fiber network (but none of the 5G core) to come from the Chinese vendor. Revenues were up almost 29% year-on-year to NT$310.7m, while net income was up 81% to NT$120.8m. ![]() It remains to be seen how the loss of Huawei impacts its financial results, which were strong for the quarter ended on June 30. The Taiwan-based foundry opted for its US business, and plans to build a new foundry in the country. TSMC was, in effect, forced to choose between its second largest customer, Huawei, and its US customers which include Apple (its largest, accounting for about 23% of its revenues in 2019) and Qualcomm. The USA had stepped up its campaign to exclude Huawei from 5G networks in allied countries, and barred component makers which use US software from selling to the Chinese vendor – US software is ubiquitous in chip companies for functions such as electronic design automation (EDA). The last of these setbacks was revealed last month. ![]() There are rumors that Italy will adopt a similar approach, while TSMC, the world’s largest chip foundry, has confirmed that it will not longer supply chips to Huawei after September 14. The latest blows are a decision by the UK government to toughen its stance, announcing a complete ban on Huawei equipment in 5G networks rather than the previously agreed 35% cap in 5G and fiber access networks. The pressures continue to mount on Huawei.
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