More Trouble for Huawei as Intel, and other Chipmakers Cut off Supplies


More trouble for Huawei after Google's pronouncement to suspend Android support. According to our sources, the American chip makers Intel, Qualcomm, Broadcom, and Xilinx had told their employees they would not provide Huawei with parts "until further notice", this will leave China's tech giant without essential components. Nikkei tipsters also alleged that Germany's Infineon had stopped "some shipments " to Huawei, although a spokesman for the company said since then that most of its products would not be subject to the US blacklisting that impelled the companies to pull out.

An effective trade embargo could seriously undermine Huawei's ability to do business. The company uses Intel chips for its servers and PCs such as MateBook X Pro. Xilinx and Broadcom provide chips for its networking business. Although Huawei manufactures its own processors for many of its phones, it may still depend on Qualcomm for some chips.

Huawei was apparently preparing for happening like this by designing its own chips and stocking components. It is betting that the end of the trade war between the United States and China will soon be enough to avoid a disaster. However, it might just enough supplies for a few months. If the disagreement does not end soon or will not lead to a relent in US relations, China's tech giant may have to look for other solutions or lose significant parts of its business. China will not like that - Huawei is one of the country brightest beacons, and its decline could have serious consequences for the Chinese economy.

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