Huawei to stop smartphone chip production due to US sanctions

Washington cut off Huawei’s access to US components and technology including Google’s music and other smartphone services last year. Those restrictions were tightened in May when the White House barred vendors worldwide from using US technology to pro

Huawei to stop smartphone chip production due to US sanctions

He admitted that Huawei has made huge R&D investments but when it comes to semiconductor, Huawei only did chip design but skipped on chip production.

US officials have for more than a year argued that placing restrictions on Huawei is necessary because they see it posing significant national-security risks regarding links to the Chinese government, a stance some USA allies are beginning to embrace.

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Chinese telecom giant Huawei said production of its most advanced smartphone chips would stop in September due to U.S. sanctions, causing a "huge loss". Huawei relied on the firm to make its flagship Kirin chipsets and has recently acknowledged that it would not be able to produce them after September 15. US chip makers need a license from the Commerce Department to ship many such components to Huawei after the federal government placed the company on an export blacklist and imposed other limits.

Huawei has 180,000 employees and one of the world's biggest research and development budgets at more than $15 billion a year. Chinese officials accuse Washington of applying nationwide protection as an justification to prevent a competitor to USA tech industries. "This year may possibly be the previous generation of Huawei Kirin significant-conclude chips".

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Last year, the Trump administration put Huawei on a trade blacklist, officially known as the Entity List, effectively forbidding United States businesses, including the likes of Qualcomm and Intel, from selling products to the Chinese tech giant unless granted special permission. But, like most global tech manufacturers, it depends on contractors to manufacture its items. Yu said that was due to strong sales of high-end products but gave no details.

Huawei was a significant customer for Qualcomm until a year ago, when the Commerce Department blacklisted the Chinese company. Sales overseas fell 27% from a 12 months previously. That is due to fears its access to personal information about millions of American users might be a security risk.

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On Thursday, President Donald Trump declared a ban on unspecified transactions with TikTok and the Chinese owner of WeChat, a common messaging company.

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