Huawei, the world’s biggest smartphone vendor, says it’s running out of processor chips because of US sanctions against the company. pic.twitter.com/IB1nJY0koQ— The New Times (Rwanda) (@NewTimesRwanda) August 9, 2020
Chinese technology firm Huawei said that, due to a U.S. prohibition of sales of parts for the company, it is difficult for sufficient processors to manufacture its mobile telephones.
Huawei says that this ban harms her business and she can not manufacture her own processors for much longer.
As reported by AP, this week at the China Info 100 conference, Richard Yu, Chairman of Huawei Consumer Unit, discussed the subject. "The loss for us is very great," said Yu.
"Our chip producers only accepted orders until 15 May in the second round of U.S. sanctions. On September 15, production is scheduled to close. The Huawei Kirin High-End Chips are the last generation this year.'
For Yu, the company not only fails to manufacture its own chips but also has lack of access to a reliable provision of third-party chips, which is part of a wider overall problem in securing processors.
This year, compared with last year, the company plans to sell less smartphones.
The dispute started last year when Huawei was taken up by the U.S. government by the Commerce Department and placed the company on their Entity List.
This prohibits the firm from purchasing US suppliers' components or parts unless specifically authorised by the U.S. Government.
The action took place on 15 May 2019 as part of an escalating US-China trade war.
Huawei could not support some Google applications on its devices, and users of Huawei couldn't use the Google App Store.
The United States government has taken the step of providing safe products from Huawei and allowing the Chinese Government to access user data to the software on its devices. The Chinese government could spy on users. This is possible.
Huawei refused, but the company was still on the list of companies with the order to extend supply until next year.
Similar tension has recently arisen between TikTok and the US government's video app, claiming that the app collects user data that can be used to funnel the government of China and thus poses a threat to domestic security.