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iniewski
To @ibm221: What is "wassenaar arrangement"?
ibm221
Huawei places $6-billion chip order with U.S.
Peter Clarke
2/20/2012 6:47 AM EST
LONDON – Avago, Broadcom and Qualcomm have been awarded three-year chip deals by Huawei Technologies Co. Ltd. worth $6 billion.
Huawei (Shenzhen, China), a leading mobile phone, networking and telecommunications equipment and services company, that is also closely associated with HiSilicon Technologies Co. Ltd. (Shenzhen, China), a fabless chip company formed in 2004 by the spin-off of Huawei's ASIC design center. Huawei said the three-year OEM contracts awarded to the U.S. companies will directly and indirectly create tens of thousands of jobs for U.S. business while contributing to growth and development opportunities for California.
Huawei has declined to break out the amounts in the individual company contracts. Qualcomm (San Diego, Calif.) said it would be supplying Snapdragon pplication processors and multimode modems to Huawei under its contract.
"The U.S. holds the leading position in the ICT industry, and when coupled with Huawei's long-term dedication to innovation in the U.S. market, the result is a strategic collaboration to develop a more diversified, balanced and healthier global ICT ecosystem," Ms. Chen Lifang, senior corporate vice president of Huawei, in a statement.
Since the establishment of U.S. operations in 2001, Huawei has place procurement contracts with 280 U.S. technology companies worth more than $30 billion, the company said. These contracts have covered software, ICs and services, the comp. Huawei said its 2011 procurement in the U.S. was up 8 percent compared with 2010 and that the latest contracts were a signification addition to the business that Huawei was already doing with Avago (San Jose, Calif.), Broadcom (Irvine, Calif.) and Qualcomm.
"Avago has methodically built up our wireless portfolio of power amplifiers, filters and RF front-end modules to support mobile phone applications and cellular infrastructure equipment, and this serves as an excellent validation of the leading performance and value our technology brings to customers," said Bryan Ingram, vice president and general manager of the wireless semiconductor division of Avago Technologies, in the same statement.
"Huawei is an important global customer and is a growing leader in the wireless industry. Qualcomm is pleased to be working with Huawei, supplying our leading family of Snapdragon processors and multimode broadband modem products, and we look forward to Huawei's continued success," said Cristiano Amon, senior vice president of Qualcomm, in the same statement.
Related links and articles:
www.huawei.com
www.hisilicon.com
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cdhmanning
2/20/2012 9:46 PM EST
Things have sure changed from a few years ago when Asia was supplying the low-value goods which USA manufactured into high value goods.
Increasingly it seems USA is becoming a supplier of lower value goods to China and elsewhere, be those ICs, iron ore, logs, coal or even alfalfa.
I guess it is good for USA to be getting something out of the Chinese boom.
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KB3001
2/21/2012 11:51 AM EST
Things have changed indeed. I guess it's good for the US to benefit from China's boom now.
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GREAT-Terry
2/21/2012 12:51 AM EST
Does it mean Huawei is aggressively expanding its market and hope to be the dominant ICT supplier? It may be a good sign to the US IC industry though.
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sdfs
2/21/2012 2:06 AM EST
Peter, calling Huawei and Hisilicon ‘closely associated’ is a bit of an understatement here: Hisilicon is effectively still the internal chip division of Huawei, based upon the use of the same offices and Huawei namecards and email addresses by nearly all "Hisilicon" employees I have met personally. Huawei marketing may want Hisilicon to be an independent company for various reasons, but this is not (yet) the reality.
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ibm221
2/21/2012 2:47 AM EST
hw is impressing US lawmakes to lift it's telecomm ban this/next year?
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KB3001
2/21/2012 11:53 AM EST
Surely it's partly for this purpose, yes.
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BobsUrUncle
2/21/2012 10:33 AM EST
HW trying to get these companies to lobby for more access for their spygear ahmm... telecom gear?
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ibm221
2/21/2012 7:23 PM EST
HW 's true intention is to show US they can take some/alot US spygears. why US behaves so paranoid?
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kinnar
2/21/2012 2:05 PM EST
This is nothing shocking as this seems the regular inventory purchase of Huawei. Huawei is the largest telecom manufacturing company of the most populated country so the inventory will be also very huge. But it is really a big deal as it speaks the duration of 3 years.
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ibm221
2/21/2012 7:25 PM EST
HW 's true intention is to show US they can take some or alot US spygears. why US behaves so paranoid?
Is it a mental problem ?
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eewiz
2/22/2012 10:51 AM EST
"Huawei said the three-year OEM contracts awarded to the U.S. companies will directly and indirectly create tens of thousands of jobs for U.S. business while contributing to growth and development opportunities for California. "
what about the loss of jobs at Cisco & Juniper ?
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chanj
2/22/2012 12:15 PM EST
What Huawei is going to benefit if they create jobs in US. There are some number of engineers and engineering executive in Huawei which are as good as US engineers and executives. If their intention is to build a leading communication equipment vendors, would they rather home grow their technical competency? Unless they are absorbing the talents who leave Cisco & Juniper.
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jm_1459
2/25/2012 8:59 AM EST
I wonder what percentage of Qualcomm et al's fabrication output this is .. could it also be a case of denying manufacturing opportunities to competitors .. ?
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iniewski
4/10/2012 10:40 PM EDT
I guess this deal confirms that IC design industry in China has still not caught up to US performance levels...but it might be only question of time...Kris
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ibm221
4/11/2012 1:25 AM EDT
yeah, thanks to wassenaar arrangement.
otherwise the TSMC/UMC new fabs will locate at the otherside..
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iniewski
4/11/2012 10:16 AM EDT
To @ibm221: What is "wassenaar arrangement"?
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