Huawei: ‘Survival is the goal’ as it stockpiles chips

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Huawei: 'Survival is the goal' as it stockpiles chips

picture copyrightReuters

picture captionGuo Ping laid out the issues Huawei confronted, at its annual convention

Huawei says it needed to rush to stockpile chips forward of the most recent tightening of commerce restrictions from Washington, which has hit its provide exhausting.

“Continuous aggression from the US authorities has put us below important stress,” Guo Ping, who chairs the corporate, mentioned.

“Proper now, survival is the aim.”

The corporate urged the US to rethink the principles, which make it troublesome for Huawei to purchase important elements for merchandise equivalent to telephones.

US President Donald Trump’s administration has focused a lot of Chinese language firms over alleged national-security points – together with:

  • {hardware} producers equivalent to Huawei
  • software program suppliers TikTok and WeChat

Huawei, specifically, has been battling US restrictions in some kind for 2 years.

And since 15 September, the corporate can not purchase key chips from its producers.

Talking at Huawei’s annual business occasion, in Shanghai, Mr Guo mentioned the change had “introduced nice challenges to our manufacturing and operation”.

“When it comes to the chips, in the midst of September, we simply rushed to stockpile some,” he instructed reporters.

  • Huawei: US tightens restrictions on Chinese giant

  • Huawei takes top spot in global phone shipments

Huawei mentioned it had adequate provides to maintain its business-to-business operations – equivalent to 5G infrastructure – operating easily.

However it’s reportedly going through shortages in key elements for its smartphone enterprise, the place it stays one of many world’s largest producers.

Huawei is trying to find new suppliers, with Mr Guo suggesting main chipmaker Qualcomm as a attainable supply – if it could possibly get a licence from the US to provide them.

“If the US authorities permits it, we’re nonetheless keen to purchase merchandise from US firms,” he mentioned.

Chip shortages will not be the one downside Huawei is going through – it’ll now start transitioning its phones to its own operating system, Concord, as a substitute of the broadly used Android system.
China, in the meantime, stays deeply important of the US motion, accusing it of “naked bullying” of Chinese technology companies.

It views the allegations of national-security issues as a smokescreen, alleging the restrictions are actually an try to wreck competitors to US firms.

Associated Subjects

  • China-US relations

  • China
  • Huawei

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