14 DAY TRIAL // Huawei has lost the support of Chinese chipmakers, according to a new report, as some of them are afraid that working with the company could lead to sanctions in the United States.
More specifically, a report from Digitimes reveals that a series of chipmakers based in China has quietly suspended shipments to Huawei, despite being based in the same country.
Furthermore, some have even dropped joint development projects, the said source adds, all because they are concerned that a potential collaboration with Huawei could lead to legal trouble in the United States.
The Huawei ban
Back in May 2019, the United States administration decided to ban Huawei from working with American companies, which means that the Chinese firm could no longer use products like Google services and Android on its devices.
While Huawei has since tried to develop its own alternatives, including Harmony OS, an operating system supposed to replace Android, it’s not a secret that the company has relied more on China and the support of local partners and customers.
However, due to the potential legal trouble in the U.S., even Chinese partners are ready to drop their collaboration with Huawei.
Earlier this year, the United States government has also announced that Huawei is no longer allowed to use products built by non-American companies, as long as they rely on American technology. This has caused even more problems for Huawei, as it was thus banned from working with a series of new partners.
Right now, Huawei is trying to deal with all these problems by creating stocks of all components, but it’s not a secret that sooner or later, the company would just run out of parts. Until this happens, Huawei keeps hoping that the U.S. sanctions would be lifted and everything would come back to normal sooner or later.