Huawei to stop making their Kirin  flagship chipsets

Huawei will stop making its flagship Kirin chipsets as the U.S – China Trade war escalates. The mate P40 series might be the last Kirin powered flagship.

“Unfortunately, in the second round of U.S. sanctions, our chip producers only accepted orders until May 15. Production will close on Sept. 15. Our AI-powered chips also cannot be processed. This is a huge loss for us.”

– Huawei CEO Richard Yu said at the China Information Technology Summit 2020 on August 7

He also confirmed that Huawei surpassed Samsung in terms of units shipped in the second quarter of this year. And also shipped 105 million smartphones in the Q1 of 2020 which fetched CNY 255.8 billion in revenue. Yu said smartphone sales probably will be lower than 2019’s level of 240 million handsets.

Before the end of supply, the company will be able to acquire chips for 15 million Mate 40s. After that, it will need to find a new source for their chipsets and Qualcomm seems really interested to supply their snapdragon chipsets.

THE US SANCTIONS :

Huawei’s HiSilicon division mainly relies on software from US companies to design its chips. It outsources the production to Taiwan Semiconductor Manufacturing Co, which uses equipment from US companies. TSMC has stepped down from manufacturing chips for Huawei to avoid consequences from the US. Penalties were tightened in May when the White House barred vendors worldwide from using US technology to produce components for Huawei.

The British government also bowed to growing US pressure and pledged to remove Huawei from its 5G network by 2027. Europe, Australia, and Japan have also taken steps to restrict the Chinese company’s participation in their 5G roll-out

This is hardly a positive development for Huawei, which seems more unlikely than ever to regain its access to the market or be allowed to do business with US companies.