Close Menu
  • Homepage
  • News
  • Cloud & AI
  • ECommerce
  • Entertainment
  • Finance
  • Opinion
  • Podcast
  • Contact

Subscribe to Updates

Get the latest technology news from TechFinancials News about FinTech, Tech, Business, Telecoms and Connected Life.

What's Hot

Rise In E-Commerce Activity Boosts SA’s Supply Chain Sector

2025-07-16

iPhone 17 Pro May Return To Aluminum Alloy Body

2025-07-16

LEPAS Debuts In South Africa 2026 To Redefine Premium SUVs

2025-07-16
Facebook X (Twitter) Instagram
Trending
  • Rise In E-Commerce Activity Boosts SA’s Supply Chain Sector
Facebook X (Twitter) Instagram YouTube LinkedIn WhatsApp RSS
TechFinancials
  • Homepage
  • News
  • Cloud & AI
  • ECommerce
  • Entertainment
  • Finance
  • Opinion
  • Podcast
  • Contact
TechFinancials
Home»Opinion»How New Proposed US Restrictions on Chip-Making Equipment will Affect Africa
Opinion

How New Proposed US Restrictions on Chip-Making Equipment will Affect Africa

Edison XieBy Edison Xie2020-04-21Updated:2020-04-211 Comment4 Mins Read
Share Facebook Twitter Pinterest LinkedIn Tumblr Email
Huawei
Huawei. Veja / Shutterstock.com
Share
Facebook Twitter LinkedIn Pinterest Email Copy Link

Some senior officials in the Trump administration have put forward 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.

Analysts say this could backfire on U.S. companies as the latter will 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 U.S leadership in the semiconductor sector and will consequently decouple US and Chinese technology industries.

Driving Force of Development

The semiconductor industry is widely recognised as a key driver and enabler for the whole electronics value chain. With an expanding tech industry and a growing innovation culture, Africa has proved its potential to be a competitive force in technology in the future. So this unilaterally proposed change of rules by the U.S. could hurt Africa’s fast-growing technology industry.

In 2019, the global market for semiconductors was projected to shrink by 12% due to growing economic uncertainties from the U.S.-China trade war. This year’s COVID-19 pandemic is further shaking up the global semiconductor industry. A new IDC report says the semiconductor industry will fall by 6%.

The proposed move, backed by some U.S. officials, will create more uncertainties in the global semiconductor sector, which we see as the centrepiece of ICTs that transform society for the better.

These technologies which enable new technologies like artificial intelligence, 5G and the Internet of Things, have been playing a critical role in Africa’s social-economic development. When the COVID-19 pandemic is behind us, ICTs and digital economy will also play a crucial role in economic recovery.

Not Allowed to Cook in your own Kitchen with an American pan

If we look closely at the proposed change of rules, we can see that it aims for imposing restrictions of the use of equipment that has already been sold. This will severely undermine the basic principles of international trade. The post-sale rules change will ultimately erode trust in the global supply chain, nullifying established norms and regulations overnight. Needless to say, Africa will also be the victim.

The global semiconductor value chain has taken decades to build. Semiconductor modules are highly interdependent, and no company or country can build up a comprehensive supply chain on their own.

If these new rules were to take effect, even if merely one piece of US-origin equipment, say a screwdriver purchased from the US years ago, was used at any step in the production of chips, chipmakers outside of the US would have to seek approval from the US government.

By way of example, this is equivalent to saying one could not be allowed to make face masks during the coronavirus pandemic, because a pair of American scissors was used in the mask production line. This situation will further deteriorate the already hard-hit global economy, when we are in urgent need of an open, collaborative, and stable global value chain.

Africa must have a Share in 4IR

According to a report by Deloitte, the global semiconductor industry looks set to ramp up growth well into the next decade due to emerging technologies such as autonomous driving, artificial intelligence (AI), 5G and Internet of Things, coupled with consistent spending on R&D and competition among key players.

The global semiconductor sector market offers Africa opportunities not to be missed. With a massive growth in technology hubs across the continent, growing over 50% in the last several years, Africa needs to have a share in the global semiconductors industry, to secure its competitiveness in the future.

  • Edison Xie is director of Media Affairs, Huawei Southern Africa Region

4IR 5G Africa AI Chip-making COVID-19 Huawei IoT US
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
Edison Xie

Related Posts

How SA’s BFSI Industries Are Seizing The GenAI Opportunity

2025-07-10

Huawei eKit Launches 20+ Products To Empower South African SMEs

2025-07-09

Huawei Showcases Digital Solutions To Transform The Public Sector

2025-07-09

Your Data Privacy Is Slipping Away – Here’s Why And What You Can Do About It

2025-07-09

Why The Future Of AI Lies In Vertical Platforms

2025-07-08

4Sight Investing R20M To Develop Industry-Specific Agentic AI Solutions

2025-07-08

Social Media Can Support Or Undermine Democracy – It Comes Down To How It’s Designed

2025-07-07

Act Now And Stop Illicit Alcohol Rise With Collective Action

2025-07-07

Partnership Delivers Progress, But Energy Reforms Need Acceleration

2025-07-07

1 Comment

  1. Pingback: Electronic Component Shortages Leaving Gamers Wanting - TechFinancials

Leave A Reply Cancel Reply

DON'T MISS
Breaking News

Rise In E-Commerce Activity Boosts SA’s Supply Chain Sector

Despite facing ongoing challenges, South Africa’s supply chain sector is experiencing growth fuelled by a…

LEPAS Debuts In South Africa 2026 To Redefine Premium SUVs

2025-07-16

How Agri-Tech Is Powering South Africa’s Cannabis Boom

2025-07-15

Ithuba Challenges Lottery Licence Award

2025-07-14
Stay In Touch
  • Facebook
  • Twitter
  • YouTube
  • LinkedIn
OUR PICKS

Fuse Lit: SA’s U.S. Tech Bomb ‘Nears Detonation’

2025-07-16

US Denies Mcebisi Jonas’ Visa, Rejects Credentials As Ramaphosa’s Envoy

2025-07-15

Takealot Expands Pickup Points At Pick n Pay For Shopper Convenience

2025-07-14

DA Urges President: Fire Minister Nkabane Now – Open Letter

2025-06-25

Subscribe to Updates

Get the latest tech news from TechFinancials about telecoms, fintech and connected life.

About Us

TechFinancials delivers in-depth analysis of tech, digital revolution, fintech, e-commerce, digital banking and breaking tech news.

Facebook X (Twitter) Instagram YouTube LinkedIn WhatsApp Reddit RSS
Our Picks

Rise In E-Commerce Activity Boosts SA’s Supply Chain Sector

2025-07-16

iPhone 17 Pro May Return To Aluminum Alloy Body

2025-07-16

LEPAS Debuts In South Africa 2026 To Redefine Premium SUVs

2025-07-16
Recent Posts
  • Rise In E-Commerce Activity Boosts SA’s Supply Chain Sector
  • iPhone 17 Pro May Return To Aluminum Alloy Body
  • LEPAS Debuts In South Africa 2026 To Redefine Premium SUVs
  • Fuse Lit: SA’s U.S. Tech Bomb ‘Nears Detonation’
  • Gwede Mantashe Named Acting Minister Of Police
TechFinancials
RSS Facebook X (Twitter) LinkedIn YouTube WhatsApp
  • Homepage
  • Newsletter
  • Contact
  • Advertise
  • Privacy Policy
  • About
© 2025 TechFinancials. Designed by TFS Media.

Type above and press Enter to search. Press Esc to cancel.

Ad Blocker Enabled!
Ad Blocker Enabled!
Our website is made possible by displaying online advertisements to our visitors. Please support us by disabling your Ad Blocker.