With the increasing pressure on Chinese tech giants from all world economies especially the US, most of them have stopped manufacturing crucial products. The latest addition to this list in Huawei’s Kirin chipsets.
According to a Reuters report,
Huawei Technologies Co [HWT.UL] will stop making its flagship Kirin chipsets next month, financial magazine Caixin said on Saturday, as the impact of U.S. pressure on the Chinese tech giant grows.
Pressure on Suppliers
With U.S.-China relations at their worst in decades, Washington is pressing governments around to world to squeeze Huawei out, arguing it would hand over data to the Chinese government for spying. Huawei denies it spies for China.
Extradition of Huawei Chief
The United States is also seeking the extradition from Canada of Huawei’s chief financial officer, Meng Wanzhou, on charges of bank fraud.
In May the U.S. Commerce Department issued orders that required suppliers of software and manufacturing equipment to refrain from doing business with Huawei without first obtaining a license.
Company Says Huge Loss
“From Sept. 15 onward, our flagship Kirin processors cannot be produced,” Yu said, according to Caixin. “Our AI-powered chips also cannot be processed. This is a huge loss for us.”
Huawei’s HiSilicon division relies on software from U.S. companies such as Cadence Design Systems Inc or Synopsys Inc to design its chips and it outsources the production to Taiwan Semiconductor Manufacturing Co (TSMC), which uses equipment from U.S. companies.
Huawei declined comment on the Caixin report. TSMC, Cadence and Synopsys did not immediately respond to email requests for comment.
“Huawei began exploring the chip sector over 10 years ago, starting from hugely lagging behind, to slightly lagging behind, to catching up, and then to a leader,” Yu was quoted as saying.
“We invested massive resources for R&D, and went through a difficult process.”