Huawei running out of phone chips

Yolanda Curtis
August 10, 2020

He admitted that Huawei has made huge R&D investments but when it comes to semiconductor, Huawei only did chip design but skipped on chip production.

Huawei denies it has given info to Beijing, but America's influence has seen dividends: the British government last month said that it would prohibit its telecommunication companies from purchasing new equipment made by Huawei.

Chinese officials have accused Washington of using national security as an excuse to stop a competitor to United States tech industries.

Huawei's HiSilicon division depends on computer software from US corporations such as Cadence Design and style Devices Inc or Synopsys Inc to style and design its chips and it outsources the output to Taiwan Semiconductor Manufacturing Co (TSMC), which employs machines from USA corporations. Then in May, the US Commerce Office issued an amended export rule to block shipments of semiconductors to Huawei to "strategically target Huawei's acquisition of semiconductors that are the immediate item of sure US software and technological innovation".

Manufacturing of Kirin chips intended by Huawei's own engineers will quit September 15 simply because they are manufactured by contractors that want USA production technological innovation, said Richard Yu, president of the company's shopper unit.

Huawei, the world's biggest smartphone vendor, says it's running out of processor chips because of U.S. sanctions against the company, The Associated Press reported. The U.S. sanctions against Huawei are based exclusively on the firm's networking supremacy, and not on its smartphone business. Huawei says this ban is damaging its business and that it will not be able to produce its own processors for much longer.

Huawei is already struggling with the ban of not using any google service.

With these restrictions, the US has handed Qualcomm's foreign competitors a market worth as much as 8 billion USA dollars annually, the report said. Thus, the Kirin's latest 9000 chips will be the last one to be produced, as high-end, and becoming to Mate 40 handsets. Chinese officials accuse Washington of applying nationwide protection as an justification to prevent a competitor to USA tech industries. Thus, it takes time for SMIC to become a reliable producer for Huawei.

Earlier, Huawei announced its global sales rose 13.1 per cent over a year ago to $65 billion in the first half of 2020. Sales overseas fell 27% from a 12 months previously.

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