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Chip Sourcing Is Huawei's Biggest Problem, Chairman Says

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Huawei chairman says that chip sourcing for mobile devices is the biggest challenge that the company faces, PhoneArena reports.

Dates back to 2019, Trump’s administration imposed sanctions on Huawei due to its ties with the Chinese government and its possible threat to the United States national security. According to the order, any trade with Huawei by US-based companies is forbidden, and the Chinese OEM can’t access chips and other technology made in the United States.

These sanctions caused Huawei to lose a part of its market share and reduce smartphone production. Even the company’s rotating chairman is confessing that U.S. sanctions were significant damage to the brand.

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“The U.S. has created many difficulties for Huawei, but they are solvable. It is in the supply chain where the U.S. has a big impact on Huawei. We need more investment and innovation to deal with the U.S. sanctions. Huawei has established and helped its industrial chain partners to solve the problems of supply continuity and competitiveness.” Huawei rotating chairman Guo Ping noted.

Huawei doesn’t want to step back

However, Ping says that despite boycotts, the company would never step down from the mobile market, and each country’s policies can’t affect Huawei’s position in the world. Also, they will continue to drive forward in the international market despite chip sourcing problems.

“At present, the biggest difficulty for us is the mobile phone business,” Huawei Chairman added. “As we all know, chips for mobile phones need advanced technology as they are small and have low power consumption. Huawei can design its own chip, but no one can manufacture it for us. That’s where we (are) stuck.”

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The U.S. sanctions made Huawei enter new segments of business, including car technology and even mining. Wherever there is money, Huawei is there. Of course, the company must be careful about its lousy reputation for installing backdoors in network projects.

Huawei needs to prevail

The chairman says that the secret to beating the U.S. is that every employee must work “diligently” and “effectively.” Moreover, he insisted on the attitude of “what does not kill me makes me stronger” for employees.

The United States sanctions have forced China to increase investments in domestic production of chips and semiconductors. Relying on foreign supply chains makes China vulnerable to any possible boycott in the future. Huawei chip sourcing challenge is a proof for that.

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Of course, the United States administration responded by announcing its plans to support chip and semiconductors production. The considered budget is $190 billion.

“Huawei phones have a lot of unique technologies of their own. We are looking forward to the day when the core problem of chip manufacturers will be completely solved in China,” the chairman noted.