Chip Companies Have Cancelled Their Huawei Deal

Posted by Kirhat | Thursday, May 23, 2019 | | 0 comments »

US Bans Huawei
The ramifications of US attempt to avoid products from Huawei has begun to start showing President Donald Trump added the Chinese telecom equipment and smartphone giant to a trade blacklist last week.

According to Bloomberg, semiconductor companies Intel, Qualcomm, Xilinx and Broadcom will no longer supply Huawei until further notice. This follows another report earlier that Google has suspended some trade with Huawei, leaving it with access only to the open-source version of Android.

In addition to impacting Huawei's business, the blacklisting has ramifications for telecom providers who are getting ready to launch 5G networks. In China, the three big telecoms (China Mobile, China Unicom and China Telecom), which are all heavily reliant on Huawei, may be forced to delay 5G rollout. Meanwhile, U.S. carriers, especially smaller ones, may have to spend millions of dollars replacing Huawei equipment they have already installed or looking for new suppliers.

In tweet a few days ago from the account Huawei Facts, the company called the blacklist a "lose-lose" situation. In a more recent tweet, it said "Oops! The U.S. is already coming to its senses over a ban on #Huawei, with a government official admitting that it cannot distance itself from the tech giant as easily as it might like. #HuaweiFacts" in response to a report that the administration might grant Huawei a temporary license to prevent service interruptions.

Meanwhile, Google's ban, first reported by Reuters, would give Huawei, the second-largest smartphone brand in the world after Samsung, access only to open-source version of Android, leaving it with a significant disadvantage to other handset makers.

According to Bloomberg, Huawei stockpiled three months worth of chips in anticipation of action by the U.S. government, which it has been at odds with since a 2012 Congressional report deemed it a potential threat to national security (accusations the company has repeatedly denied).

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