SHANGHAI (Sept 23): Huawei Technologies Co Ltd will do everything it can to strengthen its supply chain which had been “attacked”, its rotating chairman Guo Ping said today.
Guo was speaking at the Chinese smartphone and telecommunications gear maker’s annual Huawei Connect event in Shanghai that focuses on information and communications technology (ICT).
He did not give details of the alleged attack.
The company has been facing mounting pressure from the US, which last month further tightened restrictions to choke Huawei’s access to commercially available chips.
In August, Richard Yu, the chief executive officer (CEO) of Huawei’s consumer business unit, said that from Sept 15, the company would cease manufacturing its most advanced chips under the Kirin line.
Those are the chips that power Huawei’s high-end phones. Concerns that the company’s phone division will fold has led consumers to rush to purchase the company’s handsets. Vendors say prices have spiked by as much as 500 yuan (US$73.69 or RM304.75) for some devices in response to high demand.
The company had been stockpiling chips from various vendors in advance of the restrictions’ implementation. Analysts expect its existing supply of Kirin chips will run out next year.
The US restrictions, however, allow for companies to apply for a licence from US authorities in order to continue supplying Huawei. Already, some businesses have attempted to make use of the policy.
Intel said it had received licences to supply certain products to Huawei. China’s Semiconductor Manufacturing International Corp (SMIC), which uses US-origin machinery to produce chips for Huawei, also said it had applied for a licence.
Huawei unveiled earlier this month its new Harmony OS, an operating system it hopes to use in lieu of Android as Google had been barred from providing updates to the company.
The operating system will first launch on Internet-of-things (IoT) devices and later on smartphones towards year end, the company said.
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