Huawei’s goal is to ‘survive’ under US pressure

Huawei is under great pressure from the US when it is blocked from accessing extremely important commercial chips. Today, responding to reporters in China, Huawei Rotating Chairman Guo Ping shared that the United States has changed the sanctions three times and brought a great challenge to the company’s production and operations.

“Huawei is in a difficult position right now. The US government’s relentless attack has put Huawei under considerable pressure. The company is still carefully assessing the impact, but the war for life is their main goal.” me, “said Mr. Ping.

Washington alleges Huawei equipment could be used for surveillance. From September 15, the United States imposed a new regulation banning companies using US technology from supplying Huawei semiconductors. Since 2019, the US has banned domestic businesses from selling to this company.

Mr. Guo Ping speaking at the Huawei Connect 2020 conference. Photo: Huawei

Although Huawei still has enough chips for B2B operations (including 5G networks), the US ban hurts its reserves of mobile chips, Guo said. He revealed that Qualcomm is applying for licenses to continue to serve Huawei, while Intel has been licensed to supply certain products. China’s largest semiconductor maker SMIC also filed a similar filing. SMIC uses US-origin machinery to manufacture chips for Huawei.

Due to US bans, Huawei has few options when it comes to buying chips. The Wall Street Times reported that Qualcomm is lobbying the US government to export chips to Huawei. The chipmakers argue that an export restriction will cost them billions of dollars in revenue for their competitors.

On the sidelines of the annual Huawei Connect conference, Mr. Guo expressed his hope that the US government would reconsider its policy and if the US government allows it, it is willing to buy products from the US company.

According to Huawei, from September 15, it started to stop producing the most modern Kirin chips. Experts predict that Kirin’s current supply will run out from next year. If Qualcomm can fill the void left by Kirin, it will be leverage for company revenue. According to Reuters, Chinese users are rushing to buy Huawei phones because of fears that its mobile division will not be the same as before. Merchants said some models increased by 500 yuan (1.7 million).

However, Reuters said Washington did not show many signs that it would step back in the war with Huawei, especially when US-China relations fell into the worst state in decades. Last month, the US announced that it would expand the “Clean Network” program to block Chinese telecommunications applications and companies from accessing sensitive information of US citizens and businesses.

According to Reuters