US Pushes Huawei Out of Smartphone Business With a Final Blow

As if the current sanctions aren’t enough, Huawei was freshly hit with a big blow of blocking 4G chips for it’s products.

As to Reuters, three sources familiar with the matter said that the US is preparing laws to bar it’s companies from supplying chips below 5G, Wi-Fi 6 and 7 technologies, and high-performance computing equipment to Huawei soon.

No More High-end Chips For Huawei

Huawei, the Chinese tech giant, has long withstood the US heat from both Donald Trump and Joe Biden but could eventually fall out soon. As per a report from Reuters, three sources have confirmed that the US government is preparing bills to force Huawei officially out of business.

One among them cited an upcoming policy that would bar the US companies from supplying items “below the 5G level, including 4G items, Wi-Fi 6 and 7, artificial intelligence, and high-performance computing and cloud items” to Huawei.

This essentially puts Huawei out of the smartphone business, as not having critical equipment to run a smartphone would make it utterly useless. Both it’s current flagships – Mate 50 series and P50 series are run by Qualcomm’s Snapdragon 4G chipsets – while other OEMs are gradually moving to 5G.

The latest Huawei phones are already supplied without Google Apps due to software export sanctions against it. Though it led Huawei to come with it’s own suite – HarmonyOS – it isn’t as competitive as Google’s. Also, another source said that the current export licenses for 4G chips to Huawei are also denied!

This forced Huawei to rely on it’s local chip manufacturer – SMIC, for budget chips, which aren’t competitive today. Aside from struggling with the smartphone business, this new trade ban from the US can also affect Huawei’s PC business too, as Intel, AMD, and Microsoft could also be blocked from transacting with Huawei.

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