The Trump administration’s sanctions are heavily affecting Huawei, and the Chinese tech giant now says it will run out of chips for its smartphones by September without access. on vendors in the US, according to a weekend Associated Press Report.
Huawei, one of the world’s top telecom providers, has been blacklisted ever since May 2019 sourcing components for its devices from US companies under the executive order of President Donald Trump. In the sweeping escalation of the ongoing tech feud between the US and China, the ban targets some foreign companies that intelligence officials say could pose a threat to national security. family. In recent months, the White House remains restriction reinforcement and the Federal Communications Commission appoints Huawei a national security riskand radioactive dust caused Huawei to struggle.
While Huawei engineers design one of their most advanced microprocessors, the Kirin chip, the production is done by US manufacturing-based contractors, Richard Yu, the department’s president. the company’s consumer division, said at Friday’s China Info 100 commodity conference, according to the AP. . Without access to those suppliers, production ended on September 15 in what Yu called “a huge loss for us”.
“Unfortunately, during the second round of US sanctions, our chipmakers only accepted orders until May 15,” Yu said. “Production will end on September 15th. This year could be the last generation of high-end chips from Huawei Kirin.”
As a result, he added, the company “with no chips and no supplies” for its smartphones, recently overtook rival Samsung to become the world’s best-selling brand for the first time with 55.8 million devices were sold in Q2, according to solid technology research Canalys. Yu attributed the success to the first half of 2020 due to increased demand in China and high-end product sales soared, but it is predicted that Huawei’s total smartphone sales this year will drop below the 240 million units sold in 2019.
However, a conservator may come. Based on The Wall Street JournalU.S. chip company Qualcomm is lobbying US policymakers to loosen sanctions and allow it to sell chips to Huawei to make its 5G phones. The company argues that the export ban doesn’t just hurt Huawei: By cutting Qualcomm from potential sales of essential components in Huawei equipment, the ban is essentially market transfer – worth up to $ 8 billion a year – for foreign rivals like Samsung and Taiwan’s MediaTek.
“If Qualcomm has to license exports, but its foreign competitors don’t, the US government policy will cause a rapid change in 5G chipset market share in China and beyond,” the company said. said in a presentation to federal officials assessed by the Journal. That not only crippled American technology research but could also threaten the country’s global leadership in 5G, which would be “an unacceptable outcome for US interests”.
The Commerce Department could license individual businesses to circumvent the ban and sell it to Huawei, which Qualcomm says will generate billions of dollars in revenue for the company to develop and create new technology. Other US chip makers have applied for similar licenses, including Intel, Micron Technology and Xilinx, the Journal reported.
And it’s understandable that American companies will fight for a share of that pie. Even with the US blacklisting and the raging coronavirus pandemic, Huawei announced it generated $ 64.8 billion in revenue in the first half of 2020 – not quite as much as the growth it saw in previous years, but it’s still not surprising.