Huawei, a leading manufacturer of servers and communication equipment, is facing significant challenges when it comes to procuring the chips necessary for its products. While it may be difficult to obtain these components, the company is not without options. Huawei is facing a significant amount of difficulty stepping around US Sanctions, but the company is still making do. However, it does not wish to disclose the sources of its chip supply. In an attempt to maintain the confidentiality of its suppliers, Huawei has taken measures to conceal the identity of the chips it uses in its products.
At the Mobile World Congress 2023 in Barcelona, Huawei unveiled its latest server motherboards, which featured all chips covered with disguising tape and coolers. This move is a clear indication of the company’s reluctance to reveal the sources of its chips. The reason for this is that virtually all chips available in the market today are designed using electronic design automation tools that are developed in the U.S. and produced on equipment containing technologies created in America. As a result, suppliers of these chips need to obtain appropriate licenses from the U.S. Department of Commerce to sell them to Huawei or its subsidiaries. However, obtaining these licenses can be a challenging process for the company.
To overcome this obstacle, Huawei may resort to purchasing chips on the gray market or using other means to obtain hardware from its developers. By keeping its chip suppliers under wraps, Huawei hopes to safeguard its trade secrets and maintain a competitive edge. This is evident from the images published on Twitter by Jay Goldberg, which depict Huawei concealing the markings on some of its chips.
Despite the limitations imposed by the ongoing trade war between the U.S. and China, Huawei remains a major player in the server and communication equipment markets. The company continues to sell its products in China and other countries, but it needs chips to build these devices. While the loss of access to advanced semiconductor production outside of China has hampered its chip development, Huawei is reportedly collaborating with China-based SMIC to build a fab capable of producing the chips and system-in-packages it needs to manufacture its products. By taking such measures, Huawei is demonstrating its commitment to overcoming the challenges it faces and maintaining its position as a leading player in the tech industry.
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