Explainer | Huawei says it has enough chips for equipment businesses but not for its smartphones

Huawei is still evaluating impact of US action on its chip supplies after logging last addition to inventory in September

Huawei, which recently became world’s biggest smartphone maker, has been a major casualty of US-China tensions

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Huawei is starting to suffer as the Trump administration steps up efforts to slam the door on access to Western components. Photo: AP

Published: 2:22pm, 23 Sep 2020Updated: 8:48pm, 23 Sep 2020

Huawei Technologies, the Chinese tech giant at the epicentre of a US-China tech war, said it has enough chips for its communications equipment businesses but not for its smartphones, and is looking to buy new supplies from US companies provided they can gain the relevant licences from US authorities.

The Shenzhen-based company, which has faced a US trade blacklist and escalating US export restrictions in recent months, said it was still evaluating the impact of US action on its chip supplies after logging the last addition to its inventory in September.

“Our stock of chips for our enterprises business is adequate, but the company is still looking for ways to address the chipset problems for smartphones as Huawei consumes hundreds of millions of smartphone chipsets every year,” said Guo Ping on Wednesday during Huawei Connect 2020, the company’s annual event for the global ICT industry.

“Qualcomm’s chips will be used on our smartphones if they get a licence from the US government … Qualcomm has always been our local partner, and has supplied us with chips for over a decade,” he added.

Huawei rotating chairman Guo Ping speaks at Huawei Connect in Shanghai, China, September 23, 2020. Photo: Reuters

Huawei, which recently became the world’s biggest smartphone maker, has been one of the major casualties of rising US-China tensions.

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