Huawei Technologies Co, a Chinese multinational technology company, is reportedly planning to halt the production of its flagship Kirin chipsets from September. The decision has been made due to increased tensions between China & the U.S. and the rising impact of the U.S. pressure on this technology giant.
As per the statement made by Richard Yu, CEO of Consumer Business Unit at Huawei, the accelerating U.S. pressure on the suppliers of Huawei has adversely impacted the consistent manufacturing process of HiSilicon chips. The company has been advancing and exploring the chip sector for the past 10 years, with high resource investments in R&D.
Additionally, Washington has been appealing governments across the globe to cease adoption of Huawei technologies, due to security concerns. With the China-U.S. tensions continuing to increase, the state of Washington also had argued that it would provide evidence or data indicating the Chinese tech giant as a national security threat. However, the company denies such reports of spying using its technology. The U.S. is also seeking to extradite Meng Wanzhou, Huawei’s CFO, from Canada on charges of bank fraud.
The U.S. Commerce Department had issued orders in May, requiring the software & manufacturing equipment suppliers to primarily obtain a license prior to conducting business with the company. The HiSilicon division of Huawei relies on the software offered by the U.S. companies, including Synopsys Inc and Cadence Design Systems, to design its chips. It also outsources production of these chips to TSMC (Taiwan Semiconductor Manufacturing Co), which also deploys equipment from the U.S. companies.
Huawei declined to comment on the recent report of halting Kirin chips production from 15th September onwards. Synopsys, Cadence, and TSMC also did not respond immediately to requests for comments.
The company produces a wide range of chips that power only Huawei smartphones. Its line of Kirin processors is in active competition with Qualcomm in terms of quality.