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Tuesday, May 19, 2020

May 19, 2020
"Huawei" by Open Grid Scheduler / Grid Engine is licensed under CC0 1.0

Recently, the U.S. government announced to restrict chip sales to HUAWEI. Now, at the ongoing HUAWEI Analyst Summit 2020, the company issued a statement regarding the recent sanctions imposed by the Trump administration on Friday.

HUAWEI opposed the amendments made by the U.S. Department of Commerce. The company says it has remained committed to complying with all government rules and regulations since the trade ban.

Further, it added, the U.S. government decided to proceed and ignore the concerns expressed by “many companies and industry associations”. The company says that this action threatens to undermine the entire industry worldwide and it will affect more than 3 billion HUAWEI users.

The new rule is said to impact the expansion, maintenance, and continuous operations of networks worth hundreds of millions of dollars across 170 countries. HUAWEI says the action will have a serious impact on a wide range of global industries.

“The U.S. is leveraging its own technological strengths in an attempt to crush industries outside its borders,” said HUAWEI.

For reference, HUAWEI relies on TSMC for over 98% of smartphone-related chips (as per an estimate by counterpoint research) and the Taiwanese firm is one of the companies that stand to be most affected by the new U.S. rules.

In the long run, the company believes that this action will damage the trust and collaboration within the global semiconductor industry on which several industries depend.

The U.S. government’s action is said to serve to undermine the trust that the international companies place in U.S. technologies and its supply chains, which could ultimately harm U.S. interests.

HUAWEI said that it is undertaking a comprehensive examination of this new rule. It expects that the business will remain unaffected. It is trying to keep the impacts at a minimum.


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