U.S. Sanctions Force Huawei To Halt Production of Smartphone Chips

Image courtesy The Next Web

Chinese tech firm Huawei has been faced by yet another predicament that has interrupted its smartphone business. The company has now been reported to pause the production of its high-end Kirin smartphone chips.

This new trouble comes as a result of the ongoing U.S. sanctions that were imposed on the company in May. It seems that this has now cut the supply of some components that Huawei uses to make its own chips.

The sanctions that were extended in May this year added tighter restrictions hindering Huawei from conducting business with American companies. Vendors like Intel and Qualcomm were banned from supplying Huawei with components that use U.S. technology.

As a result, Huawei announced that it will be unable to produce its high-end Kirin chipsets from September 15. This was confirmed by the firm’s CEO Huawei at a Friday industry conference saying,” Unfortunately, in the second round of U.S. sanctions, our chip producers only accepted orders until May 15.”

“Production will stop on September 15,” he added. Mr Yu went on to describe the halt as a “big loss” as it would end up in the delay of some of its high-end smartphones.

Huawei has been in the middle of the U.S-China cold war that has been raging over for some time over technology. President Donald Trump has been quite vocal about his concerns with Huawei’s privacy policy. This grew, even more, when he encouraged other countries to ban the company’s 5G tech.

The spoils spread further adding on TikTok and WeChat to the mix. The two apps were unfortunately banned from the U.S. last week, although Microsoft is still pursuing to acquire TikTok.

Huawei’s smartphone business isn’t good at the moment as there are “no chips and no supply”. However, the company shocked the world when it took first place in the global smartphone market for Q2 2020. So, it will be fascinating to see how the company fairs in the near future.

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