Author Topic: Huawei is much more dependent on its U.S suppliers- Report  (Read 11828 times)

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gurutek

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Sure, Huawei founder and CEO Ren Zhengfei can sound like the company has no problems without access to parts and components from U.S. companies like Qualcomm, Intel, and Micron. And that's because Huawei's own HiSilicon unit designs its own chips including the Kirin SoCs and Balong modem chips used on its high-end models. HiSilicon president Teresa He Tingbo recently said, "We actually have foreseen this day for many years, and we do have a backup plan." In a letter written to HiSilicon employees, the executive wrote that HiSilicon will be "self-reliant." But Reuters reports that chip experts aren't buying this talk.


Last week, the U.S. added Huawei to the Commerce Department's Bureau of Industry and Security (BIS) Entity List. That means that U.S. companies cannot sell components or parts to Huawei without securing a license from the U.S. government. Huawei is considered a national security threat to the U.S. because of fears that the communist Chinese government can order it to spy on consumers and corporations at any time. For years there have been rumors that Huawei devices and products contain backdoors, ready to act as a conduit sending information to Beijing. Huawei executives have denied this, and last week company chairman Liang Hua said that the manufacturer would sign a "no-spy" document with any country.

Last year, the company spent $11 billion buying supplies from U.S. chip makers like Qualcomm, Intel, and Micron. A Reuters source in China, who works for a U.S. tech firm, states that none of Huawei's suppliers in the U.S. can be replaced by suppliers in China for at least a few years. Strategy Analytics analyst Linda Sui says, "I would be surprised if HiSilicon can make it without any U.S. suppliers." And while HiSilicon does design its own chips, one expert says that odds are that the Huawei unit uses chip design software from U.S. firms Cadence Design Systems Inc and Synopsys Inc. Mike Demler, a senior analyst with The Linley Group, points out that software from those two companies allow HiSilicon to test chip designs before testing on silicon. Testing a new blueprint on software instead of actually producing it first can save a company months of development time.