US embargo causes Huawei to run out of Kirin processors

US embargo causes Huawei to run out of Kirin processors

Business news |
By Peter Clarke

TSMC withdrew its support back in May when the United States government tightened the restrictions on Chinese chips manufactured using US technology, such as EDA tools and chip manufacturing equipment. The report quoted Richard Yu, the head of Huawei’s consumer unit saying that after September 15 it will not receive any more of its Kirin processors and that the Mate40 would be the last Huawei smartphone to be based on Kirin.

One result of the US embargo, Caixin said, is that Huawei’s total sale of mobile phones in 2020 is set to be lower than the 240 million phones it shipped in 2019. Huawei overtook Samsung as the world’s leading supplier of mobile phones in 2Q20 and could lose its crown.

The US has also barred HiSilicon, Huawei’s semiconductor subsidiary from receiving updates to its EDA tools. The leading EDA vendors are Cadence Design Systems Inc. and Synopsys Inc., both US companies.

Meanwhile Qualcomm has been lobbying the US government to relax restrictions on the sale of components to Huawei, according to a Wall Street Journal report. This would allow Qualcomm to sell its Snapdragon processors to fill the gap left by Kirin.

Qualcomm resolved a licensing dispute with Huawei last month. As a result Huawei will pay Qualcomm a payment of $1.8 billion in the fiscal fourth quarter.

Related links and articles:

US tightens restrictions on Huawei’s chip supply

Apple supplier denies human rights abuses, calls for listing reversal

Huawei’s £1 billion campus in Cambridge gets planning permission

HiSilicon breaks through into top-ten semiconductor ranking

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