Its been a while since the beef between U.S and Huawei started. Last year the U.S. government put the company in its Entity List followed by an extension on the ban by another year. Now the U.S. is tightening and controlling the export of chips which is aimed to limit the access of the company to the silicons.
Huawei like many other manufacturers relies on Qualcomm for the supply of the chips. Since the U.S. is highly controlling the supply, Huawei is now seeking help from Samsung Electronics and SK Hynix for the continued supply of memory chips. According to a report, the Chinese Tech Giant is one of the biggest clients of the aforementioned company. It spends around $8.1 billion on purchasing DRAM and NAND flash memory chips every year.
As of yet, there are no restrictions on memory chipmakers to do business with Huawei but Huawei is worried that such a situation may arise later and the company is preparing for the same.
U.S Commerce department recently announced that all the chip manufacturers using American chipmaking equipment, intellectual property, or design software are required to apply for a license before shipping chips to Huawei. Following this ruling TSMC, the world’s largest contract chipset maker stopped taking orders from Huawei.
Huawei to counter its chip needs has started purchasing the chips from MediaTek and is looking for alternatives that don’t come under the U.S. goods ban.
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