Isolated by US, Huawei can produce smartphone chips no more

Qualcomm's logo is seen during Mobile World Congress in Barcelona

Washington cut off Huawei's access to US Components and technology including Google's music and other smartphone services a year ago.

This is a very big loss for us, Yu said Friday at an industry conference, China Info 100, according to a video recording of his comments posted on multiple websites. However, he shared that this could be their final flagship chipset due to the current situation with the US.

USA stress on Huawei's suppliers has manufactured it unattainable for the company's HiSilicon chip division to preserve earning the chipsets, critical parts for mobile cellphone, Richard Yu, CEO of Huawei's Consumer Company Unit was quoted as expressing at the launch of the company's new Mate 40 handset. The Trump administration had cut off the Chinese tech giant from TSMC, a vital semiconductor partner for its Kirin chips.

Huawei is considering switching to Chinese suppliers.

Richard Yu has warned that supplies of the Mate 40 would be limited. 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.

Pressure worldwide continues to grow on Huawei as relationships between the company and the United States government have soured.

Huawei is a leader among emerging Chinese competitors in telecoms, electric cars, renewable energy and other fields in which the ruling Communist Party hopes China can become a global leader.

Earlier, DigiTimes reported that Huawei was increasing the share of third-party mobile application processors (APs) for current and upcoming smartphones, as well as slashing use of in-house Kirin chipsets made by the semiconductor division, HiSilicon, in the face of U.S. challenges.

Huawei declined to comment on the Caixin report.

Why It's Important: The Kirin chipsets are used in Huawei's recent model Huawei Mate 40, which may now be the last models with the high-end processor chips. He specified that Huawei does not have the capability to manufacture their own chips.



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