Huawei managed to increase its smartphone sales in 2019 even after the US ban. The ban of Google Services did however affected the company in a negative way. Huawei also announced about introducing its own services and OS instead of Android. Huawei’s access to chips banned by the new regulation change by the Trump administration. According to Reuters, Trump administration is bringing a new regulation that will cut off Huawei’s access to chip supplies.
What is the new proposal?
According to the new proposal, all the chip manufacturers who are either using any US equipment or Software shall obtain a license from the US before supplying to Huawei. This means Washington can dictate the terms for the license and who shall get the license. US government is targeting Huawei with one after another regulations. Reuter, also reports that the US government is exploring more options to end Huawei’s business.
TSMC supplies most of the Chip architectures to Huawei upon which Kirin processors are built. with the new US proposal, the supplies from TSMC could end hindering Huawei’s smartphone business. Almost all the Chinese Chip makers use equipment built-in the US, either software or hardware. The US still has major concerns about Huawei but is that evidence-based or just a move in the US-China trade war.
Anyway, its time for Huawei to start looking for alternatives. Huawei will now need a chip supplier who uses completely Chinese equipment to fight back. Huawei lost google services, now the chips and there is a lot to come. Will Huawei survive this, What are your opinions? Let me know in comments
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