While Huawei managed to rise to the top position in the Spanish and international market of smartphone suppliers, the still present sanctions and vetoes of the United States could be causing the company to be running out of supply to maintain the production of its chips and processors.
Because the HiSilicon subsidiary lacks the means to manufacture the Kirin chips it designs, Huawei currently relied on TSMC as a critical part of your portfolio. Now that TSMC has been removed from the equation, Huawei has found itself in a difficult position and has yet to reveal how it plans to move forward from here.
A situation that could cause big problems in the short term for the company, as explained Richard Yu, CEO of Huawei’s Consumer Business Unit, to The Associated Press. And it is that from next month, the Chinese phone manufacturer will no longer be able to manufacture its own Kirin chipsets due to the current economic pressure from the American giant.
“Unfortunately, in the second round of US sanctions, our chipmakers only accepted orders until May 15. Production will close on September 15. This year may be the latest generation of high-end chips Huawei Kirin«, Yu explained referring to the imminent arrival of the Huawei Mate 40 in September.
Thus, Huawei’s only options at this time would be to obtain its processors from MediaTek in Taiwan, or Samsung in South Korea; Although it seems that Qualcomm itself would be trying to convince the United States government to lower some of the restrictions on the sale of some of its products. And it is that specifically, the chipset company is requesting a license to equip Huawei’s upcoming 5G phones, which would be included in most of the premium product lines of this and the next years.
Qualcomm is trying to appeal to one of two conflicting positions the US government has had when it comes to dealing with Chinese companies perceived as threats to national security.
The world against Huawei
Although the most important rejection is being that of the United States, this is not the only country that seems to want to stop the rapid expansion of the Chinese giant. Just a month ago we could see how, after carrying out all the deployment for 5G networks, the United Kingdom decided to deny Huawei the implementation of its lines, justifying its decision in the classification of Huawei as a danger to national security.
Thus, all Huawei’s equipment dedicated to 5G networks should have been removed from the United Kingdom with a deadline for 2027. Although it appears that the company will be able to maintain its operational lines until then, it has enough time to try to reach an agreement.
Furthermore, being the first European country to support this blockade, as of December 31 of this year British companies and government will be prohibited from buying 5G equipment from the Chinese giant.