SHANGHAI / SHENZHEN, China (Reuters) – Huawei Technologies Co. [HWT.UL] will stop making its flagship Kirin chipsets next month, financial magazine Caixin said on Saturday as U.S. influence on the Chinese tech giant grows.
FILE PHOTO: A logo of the company Huawei is seen at Shenzhen International Airport in Shenzhen in Shenzhen, Guangdong Province, China June 17, 2019. To match Special Report HEALTH-CORONAVIRUS / BGI REUTERS / Aly Song / File Photo
US pressure on Huawei’s suppliers has made it impossible for the company’s HiSilicon chip division to make the chipsets, key components for mobile phones, Richard Yu, CEO of Huawei’s Consumer Business Unit was quoted as saying at the launch of ‘ the company’s new Mate 40 handset.
With US-China relations at least for decades, Washington is urging governments around the world to express Huawei, claiming it would pass data to the Chinese government to spies. Huawei denies spying for China.
The United States is also seeking the extradition from Canada of Huawei’s chief financial officer, Meng Wanzhou, on charges of bank fraud.
In May, the U.S. Department of Commerce issued orders requiring software and manufacturing equipment vendors to refrain from doing business with Huawei without first obtaining a license.
“As of September 15, our flagship will not be able to produce Kirin processors,” Yu said, according to Caixin. “Our AI-powered chips also cannot be processed. This is a great loss for us. ”
Huawei’s HiSilicon division relies on software from US companies such as Cadence Design Systems Inc or Synopsys Inc to design its chips and it outsources production to Taiwan Semiconductor Manufacturing Co. (TSMC), which uses equipment from US companies.
Huawei declined to comment on the Caixin report. TSMC, Cadence, and Synopsys did not immediately respond to a request for comment.
HiSilicon produces a wide range of chips, including its line of Kirin Processors, which power only Huawei smartphones and are the only Chinese Processors that can compete with those of Qualcomm in quality.
“Huawei started exploring the chip industry more than 10 years ago, starting from the very back, getting a little behind, catching and then going to a leader,” Yu was quoted as saying. “We have invested heavily in R&D resources, and have gone through a difficult process.”
Report by Josh Horwitz in Shanghai and David Kirton in Shenzhen; Edited by William Mallard
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