Huawei’s chip unit says it prepared years ago for doomsday scenario of US tech ban

Years ago when Huawei’s wholly owned semiconductor unit drew up its contingency plans, executives discussed the various doomsday scenarios that could deal a death blow to the group. One such scenario was the US cutting off access to advanced chips and technology.

Though hopeful that it would never happen, HiSilicon devoted significant resources to building a backup to ensure the survival of the group, according to a memo by Teresa He Tingbo, the company president.

With the US putting Huawei and its affiliates on a trade blacklist, that backup plan is being put to use and will “ensure the strategic safety of most of the company’s products and the continuous supply of most products”, He said, in what is one of the most detailed public description of a contingency plan.

Written in emotive language, the memo was one of the top trending topics on Twitter-like social media platform Weibo on Friday. Most of the posts expressed support for Huawei, though it is not possible to verify whether they were made by independent users. Huawei confirmed the authenticity of the memo but declined to provide further comment.

The trade blacklist would require Huawei and its affiliates to obtain approval from the US government to buy from American companies. On the same day, US President Donald Trump signed an executive order barring the use of telecommunications equipment from companies that are deemed a threat to national security, clearing the way for an outright US ban on products made by Huawei, though the order did not name China or Chinese companies specifically.

The US has expressed concerns that Huawei would act as an agent for the Chinese government and that its equipment would pose a threat to US civilian and military communications infrastructure, and that of its allies. China has said that the US was unfairly suppressing a Chinese company, while Huawei has suggested previously that actions against the company were prompted by the US realising it was lagging behind in a crucial race for 5G, seen by many as the foundation upon which advanced technologies such as artificial intelligence are built upon.