US sanction on China affects Huawei

Huawei is running out of chips because of US Sanctions

Huawei’s upcoming Mate 40 phone, which is scheduled for release in September, could be the last phone with a Kirin chip as the company says it is under huge pressure because of sanctions imposed by US.

“Unfortunately, in the second round of U.S. sanctions, our chip producers only accepted orders until May 15. Production will close on 15th September. This year may be the last generation of Huawei Kirin high-end chips.”

This sanctions were imposed after US accused the company of aiding the Chinese government in its spying effort. The sanctions imposed also forbade Google to have business with Huawei. This way the Huawei phones could not obtain Android licence hence won’t have any Android apps.

Then in May, the US Commerce Department blocked the shipments of semiconductors to Huawei in a new export rule to “strategically target Huawei’s acquisition of semiconductors that are the direct product of certain US software and technology.” This new export rule barred any semiconductor manufacturer from across the world to ship their products to Huawei until they have a licence from US for doing so.

Huawei being the world’s largest phone manufacturer, in spite of all this restrictions still defeated Samsung and maintained the lead shipping more phones than Samsung in the month of April-June.

According to some recent reports Qualcomm which is an American Chipmaking company is asking the US government to ease the sanctions on the sale of components to Huawei so that it could sell it’s chip for the upcoming Huawei 5G phones.

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