Shanghai/Shenzhen, China (Reuters)-Huawei Technologies Co., Ltd. [HWT.UL] The financial magazine Caixin said on Saturday that as the US puts increasing pressure on the tech giant, the company will stop production of its flagship Kirin chipset next month.
File photo: The Huawei logo was seen at Shenzhen International Airport in Shenzhen, Guangdong Province, China on June 17, 2019. To coincide with the special report HEALTH-CORONAVIRUS / BGI REUTERS / Aly Song / File Photo
US consumers’ pressure on Huawei’s suppliers prevented the company’s HiSilicon chip division from continuing to produce the chipset, a key component of the mobile phone. Richard Yu, CEO of Huawei’s consumer business unit, launched a new model at the company. Mate 40 mobile phone said.
As Sino-US relations are in their worst period in decades, Washington is urging governments around the world to drive Huawei out of the market, saying it will hand over data to the Chinese government for espionage. Huawei denies that it is spying for China.
The United States also tried to extradite Huawei’s chief financial officer Meng Wanzhou from Canada to accuse it of bank fraud.
In May, the US Department of Commerce issued an order requiring software and manufacturing equipment suppliers not to conduct business with Huawei without obtaining a license.
Caixin said: “From September 15th, we will not be able to produce our flagship Kirin processor.” “Our artificial intelligence chips can’t handle it either. This is a huge loss for us.”
Huawei’s HiSilicon semiconductor division relies on software from American companies such as Cadence Design Systems Inc or Synopsys Inc to design its chips, and outsources production to Taiwan Semiconductor Manufacturing Company (TSMC), which uses equipment from American companies.
Huawei declined to comment on the Caixin report. TSMC, Cadence and Synopsys did not immediately respond to email requests for comment.
HiSilicon produces various chips including its Kirin processor series, which only supports Huawei smartphones and is the only Chinese processor in China that can match Qualcomm in quality.
To quote Yu Zhenhua as saying: “Huawei began to explore the chip field 10 years ago, from a huge backwardness, to a slight backwardness, to catching up, and then leading.” “We have invested a lot of resources in research and development and have gone through a difficult process. .”
Reporting by Josh Horwitz in Shanghai and Shenzhen by David Kirton; Editing by William Mallard