Huawei commented on the difficult situation it faced due to new US sanctions

Huawei in panic mode because of US embargo

A few days ago, the United States launched another “war” against Huawei. The U.S. Department of Commerce stated that it is revising export regulations, “strategically. It is intended to enable Huawei to acquire certain direct products of American software and technology.”

If it was not clear at that time how much it would hit the Chinese giant, then understanding will appear today. As we have already written, TSMC has stopped accepting orders for Huawei’s semiconductor products. This means that TSMC will no longer produce Kirin single-chip systems for Huawei. Although it is unclear how the second-largest smartphone manufacturer will distort.

Huawei itself has just commented on the situation, but so far without any specifics.

In its tireless effort to strengthen its grip on our company, the US government decided to act, completely ignoring the fears of many companies and industry associations. This decision was arbitrary and disastrous and threatens to undermine the entire industry. This new rule will affect the expansion, maintenance, and continuous operation of hundreds of billions of dollars worth of networks that we have deployed in more than 170 countries. We expect our business will inevitably suffer. We will try our best to find a solution. Chairman of the Board Guo Ping

As you can see, it is unclear how Huawei will get out of the predicament. Recall that recently it was known that Semiconductor Manufacturing International Corporation (SMIC) will produce SoC Kirin 710A. But, first of all, this is a very low-cost solution, and Huawei is now focusing on newer platforms, and second. It is not clear whether Whether SMIC can meet the needs of Kirin 710A.

There have been rumors that Huawei may turn to Samsung. Samsung has the technical ability to produce the most modern SoC of the Chinese giant. But so far, it is unclear whether Samsung will be able to cooperate with Huawei in the next step toward the United States.

TSMC may no longer deliver Huawei smartphone chips

As in the US, the Department of Commerce announced the guidelines for companies that are “blacklisted”. And therefore effectively affected by the trade ban are being adjusted. So that it becomes more difficult for Huawei to purchase processors and other products that are manufactured using The technology is manufactured by US manufacturers.

Suppliers need U.S. permission to work for Huawei

In particular, now the Taiwanese contract manufacturer TSMC. The largest supplier of this type in the world can hardly supply the Huawei HiSilicon Kirin series chips manufactured by Huawei. The Chinese manufacturer. The reason for this is the fact that most of the production facilities of TSMC are also owned by American companies since US suppliers dominate this niche.

According to the Trump administration, the Chinese supplier of giant smartphones and the supplier of telecommunications equipment can no longer ship processors and similar products from their suppliers.

Since the TSMC now requires U.S. government approval to manufacture Huawei chips on manufacturing equipment. The equipment is supplied by U.S manufacturers for a smartphone vendor that is banned from trading. The contract manufacturer should probably stop working with Huawei for the time being. However, there is a certain amount of time during which TSMC can still deliver Huawei.

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