Huawei urges US to reconsider 'attack' on global supply chain


  • AseanPlus News
  • Wednesday, 23 Sep 2020

Huawei Chairman Guo Ping. - Photo provided to China Daily

SHANGHAI (China Daily/ANN): The Chinese telecom giant Huawei Technologies said on Wednesday (Sept 23) its supply chain was under attack from the United States and called on Washington to reconsider its trade restrictions which were hurting suppliers globally.

“The US has modified their sanctions for the third time and that has indeed brought great challenges to our production and operations, ” Huawei Chairman Guo Ping told reporters in Shanghai.

Guo said that although Huawei had sufficient chips for its business-to-business operations, including its 5G network enterprise, it was feeling the pinch of the US restrictions on its smartphone chip stocks.

He said the company was still assessing the impacts of Washington's latest chip curbs, given that the company uses millions of chips on smartphones every year.

The company has been facing mounting pressure from the US, which last month further tightened restrictions to choke Huawei’s access to commercially available chips.

“We hope the US government can reconsider its policy and if the US government allows it we are still willing to buy products from US companies, ” Guo said on the sidelines of the Huawei Connect conference.

Guo used a quote from Alexandre Dumas to describe the company's state – "All human wisdom is contained in these two words—'Wait and Hope.'"

In August, Richard Yu, the CEO of Huawei’s consumer business unit, said that starting on Sept 15, the company would cease manufacturing its most advanced chips under its Kirin line. Those are the chips that power Huawei’s high-end phones.

The company had been stockpiling chips from various vendors in advance of the restrictions’ implementation.

The US restrictions, however, allow for companies to apply for a licence from US authorities in order to continue supplying Huawei. It understood that suppliers, such as Qualcomm, were applying for US licences which would allow them to continue serving Huawei, Guo said.

Intel has said it has received licences to supply certain products to Huawei. On Tuesday, Huawei unveiled a new server product by partnering with Intel.

China’s Semiconductor Manufacturing International Corp, which uses US-origin machinery to produce chips for Huawei, said it has applied for a licence.

Forrest Norrod, senior vice-president of the US chip company AMD, also recently said the licences it has secured from the US government will let it avoid potential impacts on its business from the new rules, according to a report from tech news website Wccftech.com. - China Daily/Asia News Network

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Huawei , US , supply chain

   

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