Hi supercat,
I'll hope most of the EV manufacturer now should realized their supply chain should have no US component to be sanction proof. Its early days of their development, they have all the time to do so.
New Energy Vehicles (NEVs) in China
- Thread starter supercat
- Start date
I'll hope most of the EV manufacturer now should realized their supply chain should have no US component to be sanction proof. Its early days of their development, they have all the time to do so.
There could be some chips in the cars.
Hi galvatron,
Especially Xpeng , they use nvidia chips, initially they needed it for the car development, hopefully as they grow, the management should have a back up plan or they will suffer if they outclass Tesla.
antiterror13
Brigadier
those chips wouldn't be that advanced that need 7nm lithography
The incredible irony here is that Huawei is making a big push to put its chips into chinese cars... I think even the chinese government should slow them down here... less bunker boy decides to sanction more EV's as well.
On a serious note, it might be easier for Huawei to just leave the entire smartphone business for a few years, make more IOT chips for china's trucks, buses, cars, VR sets, laptops, drones... maybe as a "white goods" manufacturer that's out of the limelight or a while but still maintaining highly advanced engineering and design teams.
Hi j17wang,
From what I've read, that is a major thrust of its diversification, the 45nm fab is to take care of that, while waiting for their 28nm FAB from SMEE and to produce chips from it may take a minimum of 2 years. I maybe optimistic, The damage to Huawei smartphone business if you include its stock of chips may well be less than 6 months, if all its plan had been successfully implemented.
My main worry is that Huawei may strain its resources, it had to cover both legacy tech and new tech both at once. They will encounter less problem from financial side with govt providing support, but on the engineering side, recruiting the right talent and motivation will be challenging.
There was an article which looked at Huawei's financials from last year.
It mentioned Huawei has $53 Billion in cash and other securities.
So even without government support, Huawei can survive years of losses.
Hi AndrewS,
Good to know, now the search for talent may take some time, hopefully they can recruit our brethren from overseas, from Taiwan and from east asia.
Kirin 710 used with SMIC 14nm is already used on a Huawei tablet so its possible Huawei will still survive using low to medium ranged phones for a while.
Why the hell is all new Chinese EV's doing their IPO in US exchanges? China is giving subsidies to all these EV's while foreign investors will be ripping the benefits. Xpeng will be doing its IPO in US in coming week.