The Chinese smartphone manufacturer has asked Japanese smartphone parts manufacturer to hog up for the upcoming demand. Earlier, Huawei relied on both the US and Japanese suppliers for smartphone parts. Now after US sanctions on Huawei, the company is unable to do business with suppliers based in the US. In order to tackle the situation, Huawei has asked its suppliers in Japan to increase the parts supply to meet the growing demand in summers.
Huawei has made the decision to avoid any supply disruption due to increasing pressure on Chinese firms over security concerns. In detail, the Chinese smartphone maker has requested to increase supply by early summer. They want to ship more devices out of the country to cope up with the growing demand and cover any losses from different businesses.
Particularly, Toshiba Memory has been asked to improve the supply of flash memory components ahead of schedule. Further, Rohm Semiconductor will boost the IC supplies and camera related parts to the Chinese company. Kyocera has also been ordered to manufacturer additional circuit parts and capacitors. Overall, every supplier has received orders from Huawei to cover the deficit of different parts due to the US pressure. The company said that they are planning to increase the trade between both the countries from the current $6.6 billion to $8 billion.
In early 2018, the US government first banned ZTE and later Huawei from doing business in the country. The US alleged that both the companies had violated their sanctions on Iran. Then last year, Huawei was resisted from taking part in 5G telecom apparatus deals due to its closeness with the Chinese government. The US government said that Huawei 5G apparatus carries bugs which will lead the Chinese to spy. They also barred its allies from using the Huawei 5G telecom apparatus. Some countries like Australia, New Zealand, and others denied Huawei for taking part in 5G technology testing.
Now, Huawei has sued the US authorities for banning the company to do business in the country. Huawei has taken legal actions over the National Defense Authorization Act through which the government barred the use of any Huawei device in government institutions.
Despite the facts, Huawei has started preparing to handle the demand in summers. Moreover, many Huawei smartphones are also set to launch in the coming few months.
(Nikkei)
