Huawei will be a shadow of its former self if US doesn't ease restrictions by next year: report


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Oct 1, 2019
Huawei, which became the number one smartphone seller by sales in the second quarter, could sink into oblivion by next year if the US doesn't lift restrictions.

Nikkei Asian Review reports that the company's suppliers are scrambling to deliver orders before the US mandated deadline expires.

Previously, a ban had dealt a death blow to the embattled Chinese company's chip arm HiSilicon. As a result, Taiwan Semiconductor Manufacturing Company (TSMC) and other chip manufacturers that use US tech can no longer make chips for the tech giant. Huawei has already confirmed that the upcoming Mate 40 would be the last phone to feature an in-house SoC.

The company was apparently considering buying off the rack solutions for future smartphones from chip makers like Qualcomm and MediaTek. A new restriction means it could no longer purchase chips from manufacturers who use US-origin technology.

Its suppliers are allowed to honor previous orders, but they must be shipped by midnight on September 14. This means the deadline is just three weeks away.

Huawei is in a chaotic state right now

Per the new report, the company is currently in survival mode and is trying to stockpile crucial components such as 5G mobile processors, Wifi, and display driver chips from companies including MediaTek, Novatek, RichWave, and Realtek.

Memory chip makers such as Samsung and SK Hynix and camera lens suppliers like Largan Precision and Sunny Optical Technology also hope to ship products to Huawei by September 14.

All of these companies use American technologies and software to manufacture products and thus, they must comply with the ban.