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China rocked by 'sandpaper' chip fraud
vnunet.com ^ | 15 May 2006 | Simon Burns

Posted on 05/15/2006 10:14:55 AM PDT by E. Pluribus Unum

The revelation that a groundbreaking mobile phone chip is a fake has shocked China, where the home-grown 'invention' had become a source of considerable national pride. 

Shanghai's prestigious Jiaotong University announced at the weekend that the Hanxin DSP (digital signal processing) chip had been faked by inventor Professor Chen Jin, who was also the dean of the university's School of Microelectronics.

Rumours of foul play have been swirling around the project for several months, and appear to have provided the impetus for the investigation of Professor Chen.

One anonymous online forum post that began circulating in China in January claimed that Professor Chen had created the original Hanxin chips simply by grinding away the top surface of some of Motorola's Freescale DSP chips with sandpaper and having them reprinted with the Hanxin logo. 

The university did not confirm this version of events, but investigators told local media that the chip had used "foreign" technology.

They also said that, contrary to claims by the design team, Hanxin's performance in tasks like media encoding and fingerprint image matching had failed to meet targets.

Professor Chen, a 38 year-old who earned his doctorate at the University of Texas at Austin, has been lauded by the media and feted by China's political leaders during the past three years.

However, he has now been fired from his post and will have to repay millions of dollars in government funds invested in the project, reports say.

Angry comments on Chinese forums and blogs have called for everything from criminal charges to execution for the disgraced academic.

Projects like the Hanxin chip have become entangled with issues of national pride in China.

The country is heavily dependent on expensive foreign technology for its huge, and growing, electronics manufacturing industry. The word 'Hanxin' can be translated as 'Chinese heart' or 'Chinese core'.

Growing dependence on international trade, and membership of the World Trade Organisation, have forced China to adhere more strongly to rules on intellectual property rights.

In recent years the government has been strongly promoting home-grown technology as a way to reduce payments to foreign patent holders like mobile phone chip maker

Qualcomm

Foreign chip manufacturers provided about 80 per cent of the chips used in Chinese-made products last year, earning some $36bn in revenue in the country.

The first version of the Hanxin was unveiled to much fanfare in February 2003, amid proud boasts from political leaders that Shanghai could soon become one of the world's top chip manufacturing centres.

The Hanxin chips could be used in mobile phones and would help China develop its own digital signal processor chip technology without having to pay for foreign intellectual property rights, Ministry of Science and Technology officials told journalists

IBM planned to use the chip in future products, Chinese media reports claimed last year. However, a search of IBM's China and international websites returns no hits for Hanxin in English or Chinese.

Professor Chen and the university set up a company, Hisys, to develop and market the DSP chip. The Hisys website is currently offline, as are the university's pages about the invention.

Earlier this year, Chen and his 100-strong team began work on a new, more advanced version of the Hanxin. The now-cancelled Hanxin 5 was to be a system-on-a-chip which would combine a CPU with DSP functions.



TOPICS: Business/Economy; Crime/Corruption; Foreign Affairs; News/Current Events
KEYWORDS: china; fakes; fraud; scam; shockeditellyou; thief
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To: ThanhPhero

What would happen if the the mint reduced the number of dollars printed to less than replacement? Would that affect (and hopefully raise), the price of dollars on the international market?


41 posted on 05/16/2006 5:36:04 PM PDT by jonascord ("Republic. I like the sound of the word...")
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To: jonascord
Yes.

That is called deflation.

42 posted on 05/17/2006 4:52:16 AM PDT by ThanhPhero (di hanh huong den La Vang)
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To: E. Pluribus Unum

ping myself


43 posted on 05/17/2006 5:49:23 AM PDT by razorback-bert (Kooks For Kinky)
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To: 1rudeboy
How can this be? I thought we shipped our chip industry to the Chinese.

You mean we gave them other things besides nuclear weapons and missile technolgy?

44 posted on 05/17/2006 6:09:00 AM PDT by Mark17
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To: ThanhPhero
The inflation rate illustrated on that chart is the price level. Generally that mirrors the actual inflation rate pretty well but, because it does not measure inflation directly, it is deceptive. The inflation of the dollar is, by definition, the excess dollars put into the market over the amount required to keep the dollar stable.

So I was talking about "the price level" (TPL) and you were talking about "inflation of the dollar" (IOTD).   I don't particularly care about the IOTD.   I haven't seen a good way of measuring it, I haven't seen any good data sources on it, and  I'm not even sure what it is. What I do know is that I've never seen any connection between IOTD and anything important like say, employment, consumer purchasing power, and levels of private wealth, etc..  I do care about TPL because it does affect these important things.  

TPL is a lot easier to measure too, especially when so many different people are doing all the heavy lifting for us.   The labor dept.'s got their CPI for buyer's prices, and the PPI for sellers, LCI for employers, and the BEA's got the GDP deflator for everyone's prices, and on and on.  Let me know if you have a good data base on either IOTD or "true inflation".

45 posted on 05/17/2006 6:23:14 AM PDT by expat_panama (There are 10 kinds of freepers; them that manage numbers with a computer, and them that don't.)
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To: Mark17

It's pointless to discuss an issue with someone who cannot distinguish between legal and illegal activity.


46 posted on 05/17/2006 6:33:44 AM PDT by 1rudeboy
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