Isolated by US, Huawei can produce smartphone chips no more

Joanna Estrada
August 9, 2020

An executive of Chinese telecom giant Huawei Technologies reportedly says United States restrictions against the company will make it hard to procure high-performance semiconductors from mid-September.

Huawei CEO Yu Chengdong told a tech industry forum on Friday that production of the company's high-end Kirin 9000 chipset would stop from September 15, due to U.S. sanctions.

The feud has spread to include the popular Chinese-owned video app TikTok and China-based messaging service WeChat.

With U.S. -China relations at their worst in a long time, Washington is pressing governments all around to globe to squeeze Huawei out, arguing it would hand in excess of info to the Chinese federal government for spying. These sanctions were made stricter in May when the White House outright barred vendors worldwide from producing components for Huawei using USA technology.

USA pressure on Huawei's suppliers has made it impossible for the company's HiSilicon chip division to keep making the chipsets, key components for mobile phone, Richard Yu, CEO of Huawei's Consumer Business Unit was quoted as saying about the upcoming the launch of the company's new Mate 40 handset at an industry conference, China Info 100. He said Huawei lacks the ability to make its own chips.

During the 2020 Summit of China Information Technology Association, Richard Yu has confirmed that they will be releasing their Huawei Mate 40 very soon which will be powered by their latest Kirin 9000 chipset.

"Unfortunately, in the second spherical of US sanctions, our chip producers only acknowledged orders till May possibly 15. Creation will near on September 15", Yu said.

Huawei does not have the capacity to manufacture the chips, which were used in its high-end smartphones.

Taiwanese chipmaker TSMC, a major supplier to Huawei, said last month that it plans to stop shipments of semiconductors to the Chinese firm in the future. He added that the company's sale will probably be lower than last year's 240 million handsets. The company didn't immediately respond to questions Saturday.

Huawei, founded in 1987 by a former military engineer, denies accusations it might facilitate Chinese spying. Chinese officials accuse Washington of applying nationwide protection as an justification to prevent a competitor to USA tech industries.

Huawei is a leader among emerging Chinese competitors in telecoms, electric cars, renewable energy and other fields in which the ruling Communist Party hopes China can become a global leader.

Huawei Technologies Ltd., just one of the most significant producers of smartphones and community equipment, is at the centre of U.S. Yu mentioned that was due to potent profits of large-finish items but gave no facts. Sales overseas fell 27 per cent from a year earlier.

Other reports by Click Lancashire

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