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U.S. Restrictions on Huawei Expose a High-Tech Achilles’ Heel for China

BEIJING — For all of China’s efforts to become a global force in high technology rivaling the United States, it has mostly failed to produce top-flight contenders in one crucial area: the industry that gave Silicon Valley its name. Last year, China imported more than $300 billion worth of computer chips, the backbone of all digital products. That is more than it spent on crude oil from abroad. Washington has now turned China’s reliance on American microchips against Huawei, the Chinese telecommunications giant that the Trump administration has labeled a national security threat. The Commerce Department last week restricted American firms from selling components and technology to…

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Trump’s China Fight Puts U.S. Tech in the Cross Hairs

Like American automakers and other manufacturers, the tech sector has increasingly outsourced production to China, where manufacturing and assembly of products is cheaper than in the United States. In recent decades, Intel, Dell, and Apple began shifting manufacturing overseas to take advantage of lower labor costs and align operations closer to customers in emerging markets.Intel, for instance, designs and manufactures most semiconductors in the United States but relies on Chinese facilities for assembly of their chips, which will now be taxed. Moving those manufacturing and assembly operations outside of China is unrealistic, the company has warned, saying “it is too expensive to relocate established and integrated supply…

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Broadcom Reaches Nearly $19 Billion Deal to Buy CA Technologies

Broadcom has agreed to buy the software maker CA Technologies for nearly $19 billion, according to the two companies.The acquisition by Broadcom, which has become a formidable competitor in the semiconductor market in the past decade, would be the first major move by the company since its $117 billion bid for Qualcomm was blocked by the Trump administration in March.The Trump administration thwarted the Qualcomm deal citing national security concerns. White House officials said that allowing Qualcomm, an American leader in smartphone chips and wireless technology, to be taken over by a foreign company might strengthen China’s hand in a strategic industry.Broadcom, then headquartered in Singapore, had…

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