In May, Trump management tightened its blacklist restrictions on Huawei, denying corporate access to traditional “Kirin” chips designed through its subsidiary HiSilicon but manufactured through third-party vendors. At the time, there were reports of how ready Huawei was for the change, how many chips it had controlled to store, how long it would take the company to move from internal design to popular alternatives, or how to locate a production design procedure without any problem. American technology.
The consensus seemed to be that the company could have only enough to do in the next 12 months, although there was no confirmation from Shenzhen in any way. China was surely furious about the punishment inflicted on its number one generation champion: a genuine fury, not its display on TikTok and ByteDance. Huawei brabably stated the scale of the problem, “which has an effect on the expansion, maintenance and ongoing operations of networks worth billions of dollars.”
Fast forward over 3 months and this has an effect that turned out much faster than expected. That was news over the weekend, after Huawei’s chief customer sovereign Ricard Yu admitted that mate 40’s imminent flagship product would probably be the last to bring a Kirin chip. There really are few wonders here. In the absence of replacement in the United States, the Mate 40 would remain the last flagship product to bring an existing traditional chip. After that, Huawei’s next flagship product would not normally be expected until next spring, 12 months after the new rules.
However, the most worrying thing for Huawei is that Yu also recommended that there might not be enough chips to meet the full demand of the Mate 40. Huawei suppliers rejected new orders after May 15, and production cycles ended on or around September 15. the materials have fallen so low so quickly, it would be new and unexpected. “This is a very big loss for us,” Yu said at the 2020 summit of china’s Information Technology Conference on August 7.
The three months since May have been strange, even more than Huawei’s own old roller coaster, as it pushes back Washington’s strength, paddling to avoid being absorbed by the whirlwind of China and the United States. Policy. In the last quarter, which ended on June 30, Huawei, however, achieved its intention to outperform Samsung to become the world leader in smartphone manufacturers.
As noted above, it will probably be short-lived. It remains to be noted what happens after Mate 40. The most recent twist is that Qualcomm U.S. is putting pressure on the U.S. approval government. To obtain permission to purchase Huawei. With its own chips waiting for now, Huawei will have to turn to aliens. Qualcomm’s argument is that this company deserves to be passed on to America Inc., which to any other
This is all timely for another reason, of course. In this well-scripted drama we’re all watching, just as Yu was admitting the drastic impact of Trump new entity list restrictions, the world was digesting the likely impact similar sanctions will have on TikTok and WeChat. A wide range of interesting parallels here, including the latest twist that a shift from HiSilicon and TSMC toward a U.S. supplier (Qualcomm), if it were to happen, would signal a similar move to forcing a sale by China’s ByteDance to America’s Microsoft or Twitter or whoever.
U.S. sanctions opposing Huawei are now in their best year. But the next 3 to six months will probably be the maximum indication to date in terms of the effect they will have. So far, Huawei has maintained its smartphone market percentage by replacing softened foreign sales with Google’s loss, with dizzying expansion in China. Another flagship product without Google will slow exports, while there is a clear threat that chip shortages will allow national competition to cope with its decline at Huawei’s hands in recent months.
Meanwhile, the small factor of Huawei’s 5G business is also greatly affected by the new sanctions: the UK has used this explanation of why override a resolution to allow Huawei to access its new networks, claiming that new security vulnerabilities may be introduced. Huawei knew that this year would be complicated, and that before these new restrictions and the context of coronaviruses reached markets around the world. A few difficult months are coming, before the end of the year.
I am the founder/CEO of Digital Barriers, which develops complex surveillance responses for defense, national security and combating terrorism. I write about the intersection
I am the founder/CEO of Digital Barriers, which develops complex surveillance responses for defense, national security and combating terrorism. I write about the intersection of geopolitics and cybersecurity, and analyze security and surveillance stories. Contact me at [email protected].