As Western countries forbid the use of 5G equipment made by Huawei and ZTE due to security concerns and alleged Chinese-linked espionage, the global advancement towards 5G is delayed by several years according to ABI Research.
In their study, the New York-based firm recently concluded that banning Huawei and ZTE has caused a negative impact on the global economy and also on the research and development of 5G and even 6G technologies.
This is because many countries who already have existing 5G equipment by Huawei or ZTE are incurring extra costs to replace them. It’s also worth noting that global innovation slows down given the reduced competition in the industry.
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While US President Donald Trump banned Huawei from its 5G infrastructure to “protect America,” the ABI Research study actually shows that US semiconductor companies, from which China used to depend on for its silicon chip supply, are suffering from lower chipset production due to stifled demand. China simply insourced chip production with its recently built factories in Shanghai and its other tech hubs.
And then there’s standardization to worry about. Chinese companies hold a record number of 5G-related patents, and the banning of these companies mean the rest of the world has their 5G progress stifled.