Huawei May Soon Run Out Of Chips Due To U.S. Sanctions

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It's hard to remain one of the world's largest smartphone suppliers when the components are in short supply. Chinese giant Huawei ad...


It's hard to remain one of the world's largest smartphone suppliers when the components are in short supply. Chinese giant Huawei admits it is running out of chips for its devices due to the ongoing US sanctions against it.

huawei-may-soon-run-out-of-chips-due-to-us-sanctions


While these sanctions have already been extended until at least May 2021, Huawei will no longer have its Kirin chips as of next month.


A Mate 40 bypassed at the cradle

The announcement was made by Richard Yu, CEO of Huawei's consumer business unit, in a statement to the Associated Press. At a conference, the executive said that "unfortunately, following to the second round of U.S. sanctions, our chip producers only accepted orders until May 15. Production will end on 15 September", referring to the production of "the latest generation of high-end Kirin chips from Huawei. »

This chip should notably equip the Mate 40, which the manufacturer had planned to launch in September or October. In June, Huawei still said it was on schedule to meet these deadlines. That means Huawei’s new high-end Mate40 handsets debuting this fall will be the last smartphones featuring the company’s most advanced processor


Delayed effects

The United States accused Huawei of helping Chinese intelligence services, something the manufacturer has always defended itself against. Despite these denials, the Trump administration then placed Huawei and 114 of its subsidiaries on a blacklist.

This first meant that American companies could no longer sell their technologies to the Chinese giant without the express authorisation of the American government. It also meant that Huawei could no longer do business with Google, preventing it from getting an Android license for its smartphones.


But the Trump administration then touched on hardware, blocking deliveries of semiconductors to Huawei and saying it wanted to "strategically target Huawei's acquisition of semiconductors, which are the direct product of certain US software and technology. "As a result of this decision, Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest semiconductor manufacturer, reportedly cancelled orders for Huawei's HiSilicon unit in May.

After a first half-year of reprieve, during which the Chinese manufacturer recorded 13% growth and became the largest smartphone manufacturer ahead of Samsung, it finally seems to be feeling the effects of its ban. Richard Yu admits this, stating that "Huawei does not have the capacity to make its own chips" and adding: "It is a very big loss for us. »






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Simturax Tech Blog: Huawei May Soon Run Out Of Chips Due To U.S. Sanctions
Huawei May Soon Run Out Of Chips Due To U.S. Sanctions
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