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Huawei has been abandoned by chipmakers in China: Report

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Ever the US sanctions ended chip supply from TSMC to Huawei, the Chinese tech giant had placed its bets on various Chinese chipmakers and even started a few joint projects as well. However, it seems that the company might have just been abandoned by these semiconductor based companies in its home country.

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For those unaware, the US had enforced new restrictions that cut off Huawei’s chip supply. Ever since then, rumors and reports had surfaced pointing at the company looking into alternatives through other companies like MediaTek and Qualcomm. But recent sanctions have reinforced the restrictions, as Huawei and its suppliers now are required to obtain a special license if they use American made technologies. This caused the company to go into “survival mode,” with the deadline being September 15.

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According to a DigiTimes report, Huawei had been aggressively stockpiling on chips just before the deadline. And now, any additional shipments have been suspended. But the issues for the Chinese smartphone maker doesn’t stop there as it is being reported that Chinese chipmakers have also quietly suspended shipments to Huawei. This ao includes all the joint development projects the companies had been working on together.

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Huawei Logo MWC 2019

The reason for this is apparently due to fear of being targetted by the US for supplying Huawei. Industry sources close to the matter have revealed that the local chipmakers have suspended shipments since the US might also pressure them for being in breach of the US trade restrictions. If true, this would add another obstacle in Huawei’s operations that would deal a devastating blow that will be felt once its chip inventory finally dries up.

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