Huawei relies heavily on chips from TSMC, which may no longer be able to sell to the Chinese tech giant. Meanwhile, finding alternative suppliers could be a huge challenge.
The United States' latest move to restrict chip sales to Huawei could be a big blow to the Chinese technology giant, hitting its two biggest businesses and offering very little wriggle room for the firm to find alternative suppliers.which require foreign manufacturers using U.S. chipmaking equipment to get a license before being able to sell semiconductors to Huawei. There is no indication that the U.S. will grant licenses either.
, one of the companies that stands to be most affected by the new U.S. rules. TSMC uses American-made equipment to manufacture those chips.which goes into almost all of its smartphone models. The problem for Huawei is its huge reliance on TSMC with over 98% of smartphone-related chips manufactured by the Taiwanese firm, according to an estimate by Counterpoint Research.and brought in 467.3 billion yuan in sales. There is a lot of money at stake if this business unit is hit.
Richard Yu , head of Huawei's consumer business, speaks during the presentation of a Kirin 990 5G chip set at the international electronics and innovation fair IFA in Berlin on September 6, 2019.Meanwhile, Huawei has been looking at mainland Chinese chipmakers to produce its Kirin processors for smartphones.State-backed publication Global Times reported last week that SMIC had begun mass production of Huawei's Kirin 710A chip.
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