Huawei’s plan to use Qualcomm chips is now blocked by the latest U.S. restrictions announced today
Huawei has been looking for a way to produce cutting-edge chips for next year’s devices. It turned to China’s largest foundry, SMIC, but the company is not ready to churn out the powerful SoCs that Huawei requires of its phones and 5G base stations. After Huawei reached a settlement with chip designer Qualcomm, there was speculation that Huawei would start using the Snapdragon chipsets that power the majority of Android phones. Ironically, TSMC also is the manufacturer of Qualcomm’s components.
Interviewed on Fox Business News, Ross said the new rule “makes it clear that any use of American software or American fabrication equipment to produce things through Huawei is banned and requires a license. So it’s really a question of closing loopholes to prevent a bad actor from access to U.S. technology.” The Commerce Department today also added 38 Huawei affiliates in 21 countries to the Entity List which blocks those firms from receiving any U.S. technology without a license.
It seems that the harder the U.S. squeezes Huawei, the more successful the company becomes. Finally achieving a long time goal, Huawei was the top smartphone manufacturer in the world during April and May according to Counterpoint Research. Whether it will be able to hold that slim lead over Samsung remains to be seen considering the latest restrictions. Besides topping the smartphone charts, Huawei is also the global leader in supplying telecom firms with networking equipment.
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