Chinese tech giant Huawei is running out of processor chips to make smartphones due to U.S. sanctions and will be forced to stop production of its own most advanced chips, a company executive says.
The US last year cutoff the tech giant access to U.S components and technology including Googles music and other smartphones services.
The move was further tightened in May when the White House barred vendors worldwide from using U.S. technology to produce components for Huawei.
Huawei has now lost the services of TSMC (Taiwan Semiconductor Manufacturing Co). Huawei has relied on TSMC as a manufacturing partner for their inhouse HiSIlicon Kirin chips.
TSMC who use US-based technologies can no longer supply Huawei with the chips which feature in their flagship devices.
Huawei CEO Richard Yu has said that ,” as of next month, the company will no longer be able to produce its Kirin chipsets due to US sanctions because those chips are produced by contractors that rely on US manufacturing technology.”
“Unfortunately, in the second round of U.S. sanctions, our chip producers only accepted orders until May 15. Production will close on September 15 ,thuis year may be the last generation of Huawei Kirin high-end chips, ” he said.
More broadly, Huawei’s smartphone production has no chips and no supply Yu said.
Yu said this year’s smartphone sales probably will be lower than 2019’s level of 240 million handsets but gave no details.
Huawei Technologies Ltd is one of the biggest producers of smartphones and network equipment, is at the center of U.S.-Chinese tension over technology and security.
The feud has spread to include the popular Chinese-owned video app TikTok and China-based messaging service WeChat.