Huawei, the world’s largest smartphone supplier, says it is running out of processor chips due to US sanctions against the company, The Associated Press reported. And according to Richard Yu, CEO of Huawei’s consumer business unit, starting next month, the Chinese phone maker will no longer be able to manufacture its own Kirin chipsets due to current economic pressure from the United States.
“Unfortunately, in the second round of US sanctions, our chip makers only accepted orders until May 15th. Production will end on September 15, ”Yu said at a conference on August 7. “This year could be the last generation of high-end Huawei Kirin chips.” Huawei’s next Mate 40 phone, slated for release in September, could be the last phone with a Kirin chip.
The United States has accused Huawei of building backdoors into the network infrastructure, apparently to aid the Chinese government’s espionage efforts. Huawei has denied the Trump administration’s espionage charges. But the Trump administration placed Huawei and 114 of its affiliates on its entity list in May 2019, which meant that U.S. companies were unable to sell the technology to the company without the explicit approval of the US government.
It also meant that Google was banned from doing business with Huawei, preventing Huawei from obtaining an Android license and keeping Google apps off Huawei devices. The ordinance used the International Emergency Economic Powers Act to justify the ban and states that “openness must be balanced against the need to protect our country from critical threats to national security.”
Trump then extended the order until May 2021. Then, in May, the US Department of Commerce issued an amended export rule to block semiconductor shipments to Huawei in order to “strategically target Huawei acquisition semiconductors which are the direct product of certain American software and technologies ”.
This rule prevented foreign semiconductor manufacturers that use US software and technology in their operations from shipping their products to Huawei unless they had first obtained a license from the United States. Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest semiconductor maker, reportedly suspended orders for Huawei’s HiSilicon unit in May following the new US rule.
Despite the ban in the United States, earlier this year Huawei beat Samsung as the world’s largest seller of smartphones, shipping more phones between April and June than any other company, according to analyst firm Canalys.
The Wall Street Journal U.S. chipmaker Qualcomm reported on Saturday that the Trump administration had asked the Trump administration to ease restrictions on the sale of components to Huawei and allow it to sell chips to Huawei for use in its 5G phones.