Huawei brought us the chips for the next two years

Chinese manufacturer of electronics company Huawei has spent more than $23 billion to create a stockpile Essentials as a countermeasure, the U.S. trade sanctions. The reserves would allow the disgraced vendor chips for at least a year or two. But even when a sufficient number of chips Huawei could not withstand the onslaught of the United States.

According to industry sources referenced by the Nikkei Asian Review, the reserves Huawei began to create at the end of 2018. At that time, the company said that “shocked and surprised” “baseless and meaningless” allegations against them. Now Huawei has every reason to stash for a rainy day, as the situation for the Chinese vendor was complicated by new restrictive measures.

Until recently, the ban was extended to software for consumer devices: limitations related to the use of Android and other Google services to the smartphones of Huawei. Now under the new export rules to any semiconductor manufacturer, using American equipment, it is prohibited to supply products to Huawei without the permission of the US government.

Huawei is developing a chip itself, but produces them from other companies. Informed manufacturing partner TSMC was Taiwan. By the end of 2019 on orders Huawei accounted for 14% of all released its chips, which made Huawei one of the major customers of TSMC.

However, new export rules mean that even non-U.S. chip manufacturers that use American technology of making chips will need to apply for a license before sending chips to Huawei or its 114 subsidiaries, including the company by designing chip HiSilicon.

This step again puts Huawei into the center of the U.S. plan for preventing technological dominance of China, as the administration trump and legislators Express Obispooannot the fact that America’s dependence on China in critical technology can jeopardize the country’s national security.

while manufacturers of memory chips do not fall under the restrictions of the U.S. government, Huawei is concerned that the administration trump can expand your limits later, the report said the Korea Economic Daily. As the two South Korean companies supply more than 70% of DRAM memory chips worldwide, their inclusion in the new restrictive lists the United States will threaten the survival of Huawei.

Huawei produces not only smartphones, but also the server hardware, network infrastructure components. A large part of the accumulated chips are server processors from Intel and AMD, as well as FPGAs from Xilinx. Unfortunately for Huawei, the majority of stocks are probably already outdated. In recent years, the number of server processors has doubled, and PCIe 4.0 is steadily expanding. However, since the programmable gate arrays the situation is even worse: it’s a very specialized processors that are often customized to the needs of the client. Huawei uses these components in base stations and other telecommunications equipment.

it is Reported that Huawei is not able to buy most of their inventory directly, so I acquired the components from retailers and other third parties, which led to higher prices and lack of support contractor: Huawei will not be able to effectively resolve problems or to obtain compensation for defective equipment, and to upgrade the software, which, it turns out, is bound to those processors that were purchased.

as a necessary counter to the restrictions imposed by the US, Huawei is once again focused on developing its own hardware. Subsidiary HiSilicon is working on its own CPU, GPU, FPGA, modems and dozens of other specialized chips, but it’s easy to assume that they will not be ready as spare parts in the short term.