Huawei is forced to stop production of chips

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Huawei is forced to stop the production of chips. As a result, the Chinese technology giant will sell fewer smartphones this year.

Huawei, along with Samsung and Apple, is one of the few smartphone manufacturers to make their own chips for their products. But from September 15, Huawei must stop the production of its Kirin chips. Those chips are baked by the Taiwanese TSMC and the Americans have banned them from supplying chips to the Chinese concern. Production requires US technology and trade sanctions prohibit Taiwan from supplying Huawei. Yu Chengdong, who heads the consumer products division at Huawei, speaks of a “very big loss.”

In concrete terms, the decision means that the Huawei Mate 40 is the last smartphone that still has the advanced Kirin chip.

The Chinese giant expects smartphone sales this year to be below last year’s level. In 2019, Huawei managed to sell 240 million smartphones. In the second quarter, the Chinese group managed to become the largest smartphone manufacturer after Samsung, although sales in the West have collapsed and Huawei smartphones are no longer allowed to run Google apps.

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