September 27, 2022

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Huawei Running Out Of Chips Due to US Sanctions

2 min read
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As you already know, Huawei is the world’s biggest smartphone vendor with its phones being sold all over the world. Recently, Huawei mentioned that it was running out of processor chips due to the US sanctions against the company.

According to the CEO of Huawei’s consumer business unit Richard Yu, as of next month the Chinese smartphone manufacturer will no longer be able to produce its in-house Kirin chip-sets.

This possibility is as a result of the ongoing economic pressure from the US.

The US accused Huawei of building backdoors into public network infrastructures, to aid the Chinese government in spying.

Huawei has denied all allegations of spying thrown at it by the Trump Administration, but the latter has placed Huawei, and 114 of its affiliates on the US government’s entity list. 

This occurred by May 2019, restricting the sale of technology to the Tech giants by US firms, without Government approval.

This ban also meant that another Tech giant Google, is barred from communicating business with Huawei, preventing the latter from obtaining an Android license.

As you already know, without Google’s android OS, Huawei would be unable to use Google Apps. The ban stated “Openness must be balanced by the need to protect our country against national security threats.”

POTUS Donald Trump later extended the order to May 2021. Also, the US Commerce Department later on issued an amended export rule in May.

The main reason for the order is to block shipments of semiconductors to Huawei.

See also: Qualcomm to sell chips to Huawei

The above rule prevented foreign manufacturers of semiconductors, who utilized American software, and technology in their production operations.

The order prevented them from supplying their products to the Tech giant, unless they have been licensed by TSMC.  

Light At The Tunnel’s End For Huawei

Despite Huawei’s ban in the US, the former still bested Samsung as the world’s biggest smartphone sellers; since they shipped more smartphones between April, and June.

Android Flagships 2017 Review: Huawei P10 VS Samsung Galaxy S8

According to Canalys, an Analysis firm, this was described as this year’s largest sale of smartphones, higher than that of any other company.

Wall Street Journal reported that Qualcomm, the San Diego-based chip maker, has requested permission from the US government to ease the restrictions on the sale of components to Huawei.

Let’s hear what you think, drop a comment in the box below!

Author: Joel Onyeike

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