Due to new pressure from the US Department of Commerce, Huawei may no longer be able to use even its own Kirin processors. A decision that will not fail to exacerbate tensions between Washington and Beijing.
The Chinese high-tech giant faces a major new problem. According to The Associated Press, the US government has updated the list of bans on Huawei. And unfortunately, rather than easing sanctions, the Trump administration has only stepped up. The Chinese firm is now prohibited from purchasing products containing American technologies, even if the manufacturer is a foreign company. A change that will have a significant impact on chip supply. Huawei has already been using its own Kirin chips only for several months due to pressure from the United States government on US-based companies.
However, the manufacturer will have to cancel its contracts with TSMC, the founder in charge of supplying Kirin processors.
Huawei on the brink?
While a few weeks ago, we reported to you the feat achieved by the Chinese giant which for the first time reached the position of leader in the mobile telephony market, the situation is therefore likely to change quickly. Since TSMC uses predominantly American technologies, it will have to stop making Kirin chips. That said, in addition to being deprived of Snapdragon processors, Huawei will have to give up its own.
“Unfortunately, in the second round of US sanctions, our chip makers only accepted orders until May 15th. Production will be shut down on September 15, ” said Richard Yu.
Obviously, this new decision taken by the Americans will have major consequences on the functioning and health of Huawei. Especially since the US Department of Commerce now encourages partner countries of the United States to adopt similar measures.
Towards sharper tensions between China and the United States
This relentlessness against Huawei will undoubtedly impact the already precarious relationship between the United States and China. Recall that the sanctions against the Chinese technology giant stem from a suspicion of espionage due to the close links between the company and certain political leaders of the Middle Empire.
In addition to Huawei, Tik Tok is also suspected of illegally exploiting user data. This Chinese application, which is very popular in the United States, is currently in the sights of the Trump administration.