Huawei mulls chip supply options as US sanctions bite

Huawei looked to be starting to feel the full weight of US moves to restrict access [1] to critical components, with Nikkei Asian Review reporting the vendor pushed back production of a future Mate flagship smartphone as it reevaluates its supply-chain options.

Sources told the news agency Huawei reduced orders for certain parts for Q3 and told some suppliers to stop producing components for its next premium model, which is generally unveiled in H2. One supplier was scheduled to start making parts this month.

As Huawei searches for new suppliers and evaluates its stock of HiSilicon chips, a source said mass-production of the next Mate models will be delayed by up to two months, Nikkei Asian Review wrote. Another source said a move to another chip vendor could require a redesign of the handset, which would take time.

Gartner ranked the company as the world’s second-largest smartphone maker [2] by shipments in Q1.

Clampdown
In mid-May, the US Department of Commerce introduced rules to close a loophole enabling Huawei to continue using chips made using domestic technology despite a trade block.

Huawei’s flagship models run on its Kirin processor, developed by its chip unit HiSilicon but produced by Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract manufacturer of chips.

TSMC chairman Mark Liu warned last week Huawei could be barred [3] from accessing its components. The chip maker previously said it halted new chip orders [4] from Huawei.

[1] https://www.mobileworldlive.com/featured-content/home-banner/us-eats-into-huawei-chips-china-considers-counter/
[2] https://www.mobileworldlive.com/devices/news-devices/smartphone-shipments-drop-20-per-cent/
[3] https://www.mobileworldlive.com/featured-content/top-three/tsmc-prepares-for-block-on-huawei-sales/
[4] https://www.mobileworldlive.com/featured-content/home-banner/tsmc-huawei-react-to-latest-us-clampdown/

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