On 17th August, a revised ban on Huawei was issued by the BIS or the Bureau of Industry and Security. This ban on Huawei had some immediate impacts. It also had an impact on using Huawei’s products, manufactured by American technology and software. In the entity list, 38 Huawei subsidiaries also got added.
The Upgraded Rules Regarding Huawei’s Ban
Some new rules also were included in the ban such as;
The ban prohibited the use of American technology or software as the basis of foreign products. Moreover, foreign products’ use for development or manufacturing also was prohibited by the new rule. And, the related subsidiaries added in the entity list of Huawei can’t do the same.
According to the new rule, the related subsidiaries of Huawei can’t play the role of the purchaser, intermediate consignee, and final consignee. It means Huawei will face more difficulty to obtain chip demands. In May, the restrictions on Huawei were already upgraded by the United States. According to the upgraded regulation, from September 14, TSMC also won’t be capable of manufacturing chips for Huawei.
Changes In The Manufacturing Of Huawei Upcoming Phones
From the beginning of this year, the procurement of MediaTek chips has been increased by Huawei. However, several newly launched mobile phones by Huawei have included the MediaTek chips.
In the latest domestic media report, MediaTek has stated that they always have followed laws and regulations of the global trade market. MediaTek also mentioned they are paying close attention to the changes in US export control rules. They are also consulting with the external legal counsel for obtaining the latest regulations to ensure consent with relevant rules. According to the latest information, it will not significantly affect the company’s short-term operating conditions.
On 7th August, at the summit of the China Information Technology Association, Yu Chengdong, the CEO of the consumer business of Huawei stated that Huawei Mate 40 would be launched with the new Kirin 9000 series. He also added the Kirin 9000 series have more powerful 5G capabilities, powerful GPUs and NPUs, and better AI processing capabilities.
However, unfortunately, it will be Kirin’s last produced high-end chips for Huawei due to the second round of US sanctions. Yu Chengdong also mentioned that Huawei has improved itself a lot in the past ten years, and it has developed significantly through several difficulties. However, unfortunately regarding semiconductor manufacturing, Huawei didn’t take part in the capital-intensive industries and the asset-intensive fields.