How New Proposed US Restrictions On Chip-making Equipment Will Affect Africa
By Abel Kawere
Some senior officials in the Donald Trump administration have agreed to new measures to restrict the global supply of chips to Huawei Technologies, at a time when the COVID-19 pandemic impacts economic growth around the world.
Under the proposed rule change, foreign companies that use U.S chip-making equipment would be required to obtain a U.S license before supplying certain chips to Huawei.However, analysts say the proposed change of trade rules will backfire on U.S companies as the latter will soon develop their own supply chain.
A report by the Boston Consulting Group states further escalation in U.S. export control to Huawei will result in and end the leadership of U.S. in semiconductor and will consequently decouple the US and Chinese technology industries.
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