Labeled as a threat to national security in the States, Huawei has been included in the List of Entities of the US Department of Commerce. Mid-May As a result, the Chinese manufacturer was unable to access its US supply chain. Since it cost him the opportunity to overtake Samsung to become the largest phone manufacturer in the world. This is because the company’s new flagship line Mate 30 cannot use the Android version of Google Play due to the ban. This means that the phone will not have the main Google apps, including Play Store, Search, YouTube, Gmail, and Maps, just to name a few. Conversely, the phones run on an open-source version of Android with the Huawei Application Gallery that distributes compatible apps.
Some of the US companies that have had to forge links with Huawei in addition to Google include Intel, Qualcomm, and Micron. In total, Huawei has spent $ 11 billion on US components and software. Last year, the revenues that these suppliers will miss a lot. For example, Huawei was Micron’s biggest customer last year. An American company that has resumed shipping to Huawei is chip designer Qualcomm. The company CEO, Steve Mollenkopf, recently told Caixin that he is actually delivering components to Huawei that are not covered by the ban.
Qualcomm wants to sign a long-term supply contract with Huawei
In May, the US announced a 90-day period during which some Huawei vendors received a special license from the Commerce Department that allowed them to send the components and software “necessary to maintain and support existing and currently fully operational networks and equipment, including software updates and patches”. The contracts required to provide assistance and support, including software updates or patches for existing Huawei phones, were also allowed with a three-month delay. At the end of the first 90-day period, a second 90-day period began with 130 US companies that requested a special license.
Qualcomm’s Mollenkopf says his company would like to reach a long-term deal with Huawei, but this will, of course, depend on US President Donald Trump. Huawei is considered a threat to US national security. Apparently, this is the reason for its inclusion in the entity list. This is because the Chinese communist government can turn to Huawei at any time and request that it gather information for it. This has led to rumors about backdoors residing on Huawei phones and network equipment that are ready to send information about US consumers and companies to Beijing. The company has denied it many times and CEO Liang Hua has offered to sign a “No Spy” contract with any country.
Trump himself has hinted that Huawei could be used as a currency to improve the US position. In any commercial agreement reached with China. Consumer group CEO Huawei, Richard Yu, also seems to believe it. Yu recently said that if the producer is removed from the Entity List, he will be able to send a software update overnight, taking Google’s Google Play services and Google’s major Android apps to the Mate 30 series outside of China.
Although it is not known exactly which Qualcomm components are currently sending to Huawei, the phone manufacturer has used Snapdragon chipsets in some off-peak models. Huawei designs its own Kirin chips, produced by TSMC. Some of the designs used for these chips are covered by a license previously obtained from ARM Holdings of the UK; Although he is not an American company, he uses American technology and announced in May that he has broken ties with Huawei.
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