Intel, Qualcomm, and other chipmakers announced business ban with Huawei, reported Bloomberg.
Intel, Qualcomm, and other chipmakers ceased business with Huawei
The announcement of the three giant chipmakers followed after Google ceased component supplies to the China-based company. This means that Huawei can no longer use some Android parts, such as Gmail, Google Maps and Google Play services.
The Chinese firm, however, can still make its phone works by using an open component of Android, also known as the Android Open Source Project (AOSP).
The banning is a result of the executive order signed by U.S. President Donald Trump that placed the “state-controlled” company on a blacklist. The order has effectively barred U.S. companies from doing any businesses with companies on the list, also referred to as ‘Entity list’.
Japanese media reported last week that Huawei CFO Ren Zhengfei said they can go on with their operations without US companies such as Intel, Qualcomm supplying chips to them.
How Intel, Qualcomm announcement impacts Huawei
The latest announcement from the chipmakers, effectively means that Huawei can no longer use important parts such as processors and modems from the U.S. based companies mentioned above.
Intel supplies Huawei with processors and server chips for its laptop line. Qualcomm, on the other hand, provides modems and other processors.
Qualcomm’s announcement impacts less to the China firm as it already uses its own Kirin series of processors to make its phones work. Yet it still needs to source other parts from non-US firms to continue producing gadgets.
A separate report from Bloomberg also implied that Huawei has been stockpiling chips from the U.S. suppliers to last it at least three months as a preparation to the current measure.
According to Nikkei, U.S. chipmakers Western Digital and Micron technology, as well as German chipmaker Infineon Technologies, ceased shipments to Huawei. The latter’s suspension could also mean that Europe might follow suit as well.
Infineon decided to adopt a more cautious measure and stopped the shipment. But it will hold meetings this week to discuss [the situation] and make assessments,
said one source speaking to Nikkei.
Intel, Qualcomm, and other chipmakers are yet to comment on the issue of the Huawei ban.
Sources: TechCrunch, The Verge