One of the world’s top semiconductor manufacturers has revealed that Chinese telecommunications company Huawei has fully replaced it with alternative suppliers. American semiconductor giant Qualcomm says embattled tech company Huawei doesn’t need its advanced processors anymore and is now 100% reliant on other suppliers, a direct consequence of the ongoing trade war between China and the United States.
With tensions between the two nations escalating over the past decade, the Trump administration took significant steps to expel Huawei from the American market due to reported security concerns. In the years since Huawei’s expulsion from the U.S., lawmakers have strived to cripple the Chinese communications giant even further by limiting its access to the semiconductors it needs to build electronics such as mobile phones.
This left Huawei unable to access a critical raw material in its technology production pipeline and undoubtedly hindered its ability to develop up-to-date consumer electronics. Even so, Huawei adjusted to the sanctions by using older-generation processors in new mobile phones rather than the 4G microchips present in offerings from other mobile phone developers. This allowed the Chinese tech company to keep production running while it figured out alternative sources.
Qualcomm’s recent announcement that Huawei will move forward with non-Qualcomm chips heralds a shift in the global technology space. Huawei and Qualcomm initially had a collaborative relationship as the former mostly focused on producing telecom equipment while the latter specialized in the semiconductor and wireless communication fields. However, the two companies became competitors when Huawei expanded to manufacturing modems and processors before eventually making heavy investments in 5G communication and becoming Qualcomm’s largest competitor in the segment.
Huawei was rendered unable to manufacture its chips once it was cut off from the U.S. supply chain and expelled from the country, forcing it to rely on outdated 4G Qualcomm chips until the U.S. government also put a halt to this relationship. Completely cut off from the American semiconductor ecosystem, Huawei has taken significant steps toward achieving independence by creating a new in-house series of chips such as the Kirin series, which it deployed in its Huawei Pura 70 series mobile phones.
Reports now indicate that the Pura 70 series uses a significant amount of Chinese-made components, a sign that Huawei’s efforts to build an independent and resilient supply chain are paying off. Similarly, the U.S. is also trying to decouple itself from China in key industries such as green energy where Chinese companies have monopolized most of the supply chain and control minerals of strategic national importance to the U.S.
The ongoing economic conflict between the U.S. and China could also force other companies such as FingerMotion Inc. (NASDAQ: FNGR) to consider suppliers outside the U.S. in order to ensure that their operations won’t be compromised by future export bans instituted by the west.
NOTE TO INVESTORS: The latest news and updates relating to FingerMotion Inc. (NASDAQ: FNGR) are available in the company’s newsroom at https://ibn.fm/FNGR
About ChineseWire
ChineseWire (“CW”) is a specialized communications platform with a focus on promising China-based companies that are listed in North America. It is one of 60+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, CW is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, CW brings its clients unparalleled recognition and brand awareness. CW is where breaking news, insightful content and actionable information converge.
For more information, please visit https://www.ChineseWire.com
Please see full terms of use and disclaimers on the ChineseWire website applicable to all content provided by CW, wherever published or re-published: https://www.ChineseWire.com/Disclaimer
ChineseWire
Los Angeles, CA
www.ChineseWire.com
310.299.1717 Office
[email protected]
ChineseWire is powered by IBN
