Home Business In response to US sanctions,Huawei has stockpiled Crucial US Chip reserves

In response to US sanctions,Huawei has stockpiled Crucial US Chip reserves

Huawei’s upcoming high-end smartphones, possibly called Mate 40 series is rumored to be powered by a 5nm chipset. The chip in question has been long thought to be called Kirin 1020 but a new rumor from earlier today suggests it will be known as Kirin 1000, following the name of its predecessor Kirin 990.

This 5nm chipset is being manufactured by TSMC, which is the only company to have the tech for mass production. The Taiwanese chipmaker is also making Apple’s A14 5nm chipset slated to debut on iPhone 12 series.
In response to US sanctions,Huawei Technologies has built up its reserves for important US made Chips, which will last for up to 2 years. According to sources, the move was made by the Chinese tech giant to safeguard its operations against US sanctions.

Sources revealed that the ample reserves were primarily for server grade processors made by Intel and Xilinx for programable chipsets. These processors are apparently the ‘most essential components’ that Huawei uses for its base stations and emerging cloud business. For those unaware, the Chinese vendor is a major player in the 5G networking infrastructure and equipment industry and is also developing cloud based services, similar to Amazon.

Similarly, the company has also increased stocks for memory components like NAND and DRAM from Samsung, SK Hynix, Micron, and Kioxia during the same period. So, judging by how this looks, it would seem that Huawei is preparing for a battle of attrition against the US government. The impacts of the new US regulations will likely impact the Chinese OEMs operations, but only time will tell.

Surge is the Founder of Hms Arena.he lives in China and knows about China's mobile phone market.


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