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

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

Guo Ping stands in front of a blue photo spread across a conference stage, his arms outstretched as he speaks

copyright of the imageReuters

image captionGuo Ping outlined the problems Huawei faced at its annual conference

Huawei says it had to rush to stockpile chips ahead of Washington’s latest tightening of trade restrictions, which hit its offer hard.

“The relentless aggression by the US government has put us under significant pressure,” said Guo Ping, who chairs the company.

“Right now, the goal is survival.”

The company has urged the US to reconsider the rules, which make it difficult for Huawei to purchase essential parts for products like phones.

The administration of US President Donald Trump has targeted a number of Chinese companies on alleged national security issues, including:

  • hardware manufacturers such as Huawei
  • TikTok and WeChat software providers

Huawei, in particular, has been battling US restrictions in some way for two years.

And as of September 15, the company can no longer purchase key chips from its manufacturers.

Speaking at Huawei’s annual industry event in Shanghai, Guo said the change has “brought great challenges to our manufacturing and operation.”

“In terms of chips, in mid-September, we rushed to stock up,” he told reporters.

  • Huawei: the United States tightens restrictions on the Chinese giant

  • Huawei ranks first in global telephone shipments

Huawei said it has sufficient supplies to keep its business-to-business operations, such as 5G infrastructure, running smoothly.

But it is reportedly facing a shortage of key components for its smartphone business, where it remains one of the largest manufacturers in the world.

Huawei is looking for new suppliers, with Guo suggesting major chipmaker Qualcomm as a possible source if he can obtain a license from the US to supply them.

“If the US government allows it, we are still willing to buy products from US companies,” he said.

Chip shortage isn’t the only problem Huawei faces – it will now begin transferring its phones to its own operating system, Harmony, rather than the widely used Android system.
China, meanwhile, remains deeply critical of US action, accusing it of “naked bullying” of Chinese tech companies.

It views allegations of national security concerns as a smokescreen, arguing that the restrictions are indeed an attempt to harm competition for US companies.

Related topics

  • China-US relations

  • China
  • Huawei

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