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Huawei Faces Kirin Chip Reserve Shortage Due to U.S. Sanctions

On August 7, at the “2020 China Info 100 Summit,” Yu Chengdong, CEO of Huawei’s consumer business, admitted that, due to U.S. sanctions, Huawei will not be able to produce new powerful chips. Huawei’s flagship mobile phone Mate40 will be released next month. The Kirin 9000 chip will be the last high-end Kirin chip and Huawei will stop its production after September 15. Chinese media said in May of this year that the key chips that Huawei has stocked could last for two years. However, on August 7, Yu said that, because of the sanctions, the inventory of chips will be insufficient to meet the demand. The sales of Huawei mobile phones this year is therefore expected to be lower than last year. Yu also acknowledged that the upcoming Mate40 will not be accepted in the west because it cannot connect to the Google series of services. That is because of Google’s withdrawal of Huawei’s Android license last year.

In addition, the US, the U.K., and Australia announced sanctions this year; Huawei is prohibited from participating in the 5G networks in their countries. New Zealand also rejected a wireless communications company’s decision to use Huawei equipment. Japan’s Yomiuri Shimbun reported that Japan will follow the U.S. to extend the exclusion of products from Chinese telecommunications equipment manufacturers including Huawei and ZTE.

Source: Epoch Times, August 7, 2020