The situation for Huawei is worsening: CEO Richard Yu has now revealed how bad things really are for the cell phone manufacturer. It is said that the conveyor belts should stop as early as next month.
After Huawei could barely cope with the loss of Google apps and sales figures in Germany and other markets have collapsed, China’s flagship technology company could now stand in front of the ruins of its mobile phone business. The reason is the US sanctions, which are now taking full effect.
Huawei is running out of chips for cell phones
Huawei CEO Richard Yu has now revealed to the AP that the group is slowly running out of processors. “This year there could be the last generation of Huawei’s Kirin processors,” said Yu. The Kirin processors are in-house developments that Huawei primarily uses in mid-range and upper-class smartphones. TSMC has so far manufactured the chips for Huawei, but the Taiwanese company can no longer supply Huawei due to the tightened US sanctions.
According to Richard Yu, this is a “very big loss” for Huawei. From September 15, so already in the coming month, the production of the processors is to stand still. There is still no alternative to TSMC. “No chips and no deliverer,” says Yu soberly.
In addition to Huawei, other China manufacturers have good cell phones on offer:
Rescue for Huawei: can Qualcomm step in?
It is unclear how things will go on with Huawei’s cell phone division. With Huawei Mobile Services (HMS), the group has been trying for more than a year to compensate for the lack of Google apps – and can actually point to progress. Without processors, however, you can’t sell a cell phone. According to the Wallstreet Journal, Qualcomm has offered to step in as a chip supplier to supply Huawei with processors. However, as a US company, Qualcomm is also bound by the sanctions. Qualcomm may be able to convince President Trump to grant an exception here. This is unlikely to happen so shortly before the US elections.