During its latest earning calls, Huawei has revealed that it saw its largest ever decline in profit. The company saw its biggest annual decline in profits due to the impacts of the sanctions imposed by the US government.

The Chinese consumer electronics and telecommunications giant said that it saw a net profit of a total 35.6 billion Yuan (roughly 5.18 billion US Dollars) for the year 2022. This marked a whopping 69 percent year on year decline. The fall in profits is the biggest ever since the 54 percent annual decline that it saw back in 2011. One of the reasons for the massive decline is due to the massive rise in profits after it sold of its subsidiary, Honor, back in 2021.

This made the decline in 2022 appear quite a bit larger. Huawei also pointed at the rising prices of commodities along with China’s strict pandemic controls last year and the rise of its research and development expenditure as few of the reasons for the decline in profit. According to Huawei’s Rotating Chairman Eric Xu, “In 2022, a challenging external environment and non-market factors continued to take a toll on Huawei’s operations.”

He further added that “In the midst of this storm, we kept racing ahead, doing everything in our power to maintain business continuity and serve our customers”. But despite its largest ever profit fall, Huawei actually a saw a rise in revenue of a meager 0.9 percent to 642.3 billion yuan in 2022.

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Huawei has already faced various sanctions from the US government over the last couple of years. But it appears that the restrictions from the Biden administration might be getting even tighter around the company.

As of right now, the Chinese tech giant has US export restrictions around current gen and core technologies like 5G. Although, the US Department of Commerce had recently began granting licenses to some America based firms to sell certain products and technologies to the company. Back in 2020, Qualcomm was allowed to sell 4G enabled smartphones chips to Huawei. But now, it appears that this might soon be reversed.

A Commerce Department spokesperson has stated that officials are “continually assess our policies and regulations”. It appears that some officials in the Biden administration are pushing for ban on all sales to the company, which has long been rumored to have ties with the Chinese government, and by its extensions, the Chinese military as well. This news also arrives as the tensions between the US and China has been on the rise, as the former looks to hamper the latter’s advances in the tech field.

In response to this, Chinese Foreign Ministry spokesperson Mao Ning stated that Beijing “is gravely concerned about the report”. He further added that “China is strongly against the US’s abuse of state power to hobble Chinese companies by stretching the concept of national security”. It remains to be seen when and how these tougher restrictions would be implemented, so stick around for more updates regarding this matter.

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Two alleged spies from China have just recently been arrested in the US for allegedly interfering with the investigation case against Huawei. The company has been designated as a national security threat in the past, so here’s all we know about this matter.

The Department of Justice announced that it had arrested two men that are believed to be working for Chinese intelligence. These men apparently tried to hinder the US investigation into the Chinese tech giant. For those unaware, the company was placed in the US Entity list back in 2019, and faced further sanctions in months that followed. It was even cut off from Google at the start and lost its primary chip supplier, TSMC, as well by the following year.

Since then, Huawei’s smartphone operations faced a crippling blow, with its latest smartphone models launching with top end Qualcomm chipsets that do only offer 4G connectivity. From being a top smartphone maker, the brand is nowhere near the top players in the market any longer. The two Chinese spies arrested by the US are Guochum He and Zheng Wang. Both of these men are being accused of working with the Chinese government and attempting to steal files and other information from the US Attorney’s Office for the Eastern District of New York.

Notably, the files being stolen were related to an “ongoing federal criminal investigation and prosecution of a global telecommunications company (Company-1) based in the PRC (People’s Republic of China) believed to be Huawei.” In the list of accusations, both men were even charged with bribing 41,000 US Dollars in Bitcoin to a US government employee, who they thought was working for the PRC. However, that governemnt employee was actually a double agent for the FBI. So now, Wang faces 20 years in prison while He may face a sentence nearly twice as long, around 40 years.

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Just a couple of years ago, Huawei had been one of the biggest smartphone makers and was even set to topple both Apple and Samsung for the throne. However, it soon got hit with sanctions from the US, which essentially crippled its smartphone operations as a whole. But now, it appears that there might soon be some changes that help improve its situation.

For those unaware, the Chinese tech giant got hit with various restrictions that took away its access to technologies that originate from America. This basically had it lose its supply to crucial technology for its products. Furthermore, the US had followed up this with more sanctions that cut off Huawei from its primary chip supplier, TSMC. Since then, the company has launched just two flagship series, with both of them only supporting 4G networking despite the chips being used were flagship top end Qualcomm Snapdragon chips.

After Joe Biden became the new president, many had hoped that the new administration would lift some restrictions against Huawei. But this was not the case. However, it appears there will be some changes, with a Bloomberg report claiming that the US Commerce Department’s Bureau of Industry and Security issued a rule allowing certain low level technologies to be shared. In other words, some technologies can be shared to sanctioned entities like Huawei.

Alan Estevez, the Commerce undersecretary for industry and security stated that “US stakeholders need to be fully engaged in international standards organizations, particularly where the critical but sometimes invisible standards that they set have important national security as well as commercial implications.” In other words, this might be some positive news in a while for the Chinese smartphone maker.

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If you follow the tech industry, you’re probably aware that Huawei is in a lot of trouble. The company was subject to a US trade ban in May 2019, which prevented it from working with some of its long-term partners including Google. This means Huawei phones cannot access Google services such as the Play Store. So, the company had to create its own alternative to the Google Play Store called “AppGallery”. However, it is reported that AppGallery is facing a certain glitch that allows users to download paid apps for free.

This vulnerability/glitch has been discovered by Dylan Roussel. He found that the API of Huawei’s AppGallery offers no protection for paid applications. It is reportedly possible to obtain a genuine APK download link for premium apps without even having to pay for it.

To make sure that it wasn’t the issue with just one particular app, Russel tried downloading multiple apps and he was successful each time. However, one game he downloaded had a license verification, which he failed to pass.

Russel even emailed Huawei informing them about the issue and offered them 5 weeks to fix it. Now it has been 13 Weeks and the vulnerability still persists. So, he decided to disclose it publicly.

Huawei’s ignorance can have a grave impact on the earnings of developers who have published their apps in Huawei’s AppGallery. Not only that, but this issue also invites app piracy. Attackers could exploit the API to download a huge number of premium apps without even visiting the AppGallery.

If you’re an app developer with a paid app published in Huawei’s AppGallery, it is advisable for you to implement additional means of protection to your application through DRM, like the AppGallery DRM Service.

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Huawei’s rotating chairman Guo Ping yesterday during MWC 2022 talked about the company’s plans to continue its globalization strategy and increase strategic investment in underlying technologies. Through the investment, Huawei hopes to enhance its mid- and long-term competitiveness while ensuring sustainable development of the ICT industry.

“We will not withdraw from the global market. For customers who choose us, Huawei will go all out to help them achieve business success,” he stated.

The chairman added that Huawei will adhere to “globalization” and will significantly increase its strategic investment in its pivotal technologies along with working on architecture and software. This, he said, will gradually be reflected in the competitiveness of the company’s products.

The investment also aims to help other companies get closer to or even exceed the Shannon limit, which is the theoretical maximum transfer rate for error-free transmission over a channel.

On the software end, Huawei is building AI-centric full-stack software and a new software ecosystem to meet the sharply rising demand for computing power brought about by the explosive growth of AI.

MWC 2022 is being held in Barcelona, Spain and will last until March 3rd. Huawei’s booth is located in Hall 1H50, Fira Gran Via.

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The full measure of the US sanction regime against Huawei has been reflected in the latest shipment numbers for the company as shown by data released by Omdia. Huawei’s phone shipments for 2021 had declined to 35 million units, which is a massive 81.6% drop from its 2020 numbers, while its market share globally dropped from 15% in 2020 to just about 3% in 2021. Interestingly, however, Huawei’s former brand Honor sold about 40 million units, which placed it in 8th position globally ahead of Huawei.

Back in mid-2020 when the US embargo kicked in, Huawei was on the top echelon of the market, second only to Apple. It declined slightly at the end of 2020 to the third position, but its present 9th position indicates that the impact was massively felt in its smartphone segment. Huawei had been cut off from critical supplies for the software component of its smartphones and some hardware, especially important chips. Being put on the US Entity List was therefore a fundamental factor for Huawei’s steep decline. Huawei had continued to deny any ties with the Chinese military on the charge of being a security risk to the United States.

Samsung still maintains the lead in global smartphone shipments with 271.5 million units while Apple was second with 236.2 million units. Other strong performers were Xiaomi, Oppo, Realme, and Motorola. In terms of Q4 2021 performance, Apple outshone Samsung with its 87 million iPhones shipped, compared to Samsung’s 69.1 million units.

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Huawei Technologies is apparently planning to take a new step to overcome the challenges it faces with the US Sanctions. The company is planning on working with other smartphone brands to bypass US sanctions, in order to get US technologies.

According to a Bloomberg report, the Chinese tech giant is aiming on licensing its smartphone designs to other brands, which would enable it to gain access to critical US components. The news arrives from sources close to the matter, who claim that the move would enable the company to help its declining smartphone business. For those unaware, Huawei was hit with various US sanctions that restricted its access to technologies that had its origins in the US.

In other words, this basically cut off its supply to key components for its smartphones, while another sanction cut off its chip supply from TSMC. This had effectively crippled its handset operations, but now, the company is considering licensing its designs to a unit of state owned China Postal Telecommunications Appliances Co. or PTAC. This brand will then buy parts that Huawei is banned from acquiring. The unit in question is Xnova, which is also the firm that is selling Huawei’s Nova series of smartphones on its official website.

Furthermore, the partnership is also expected to have the unit offer its self branded handsets that are based on the tech giant’s designs. Other partners include Chinese telecom equipment manufacturer TD Tech Ltd, which will also sell some models that feature Huawei’s designs under its own branding as well. Keep in mind that this is still just an unconfirmed report at the moment, so take it with a pinch of salt. Just last year, the brand even had to sell off its budget smartphone making unit, Honor, and it is now attempting to “salvage” its existing smartphone business.

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The US blockade on Huawei was the major reason for the company selling off its Honor smartphone unit last year. As the US restriction led to a massive decline in the fortunes of the company, Huawei sought for several options to remain afloat including diversification of its core business model and shedding off some of its business units. Selling off the Honor brand seemed like a masterstroke as Huawei has begun to experience a rebound in its fortunes while Honor is also having a positive growth trajectory.

Honor however has been under scrutiny in the US, under suspicion that it remains a part of Huawei. Last week, personnel at four United States agencies were split on whether to put Honor on the US Commerce Department’s entity list, which will restrict technology transfer from US companies to Honor without express licenses from the Commerce Department. There is still a lack of consensus among the agencies on whether Honor, a former Huawei business unit posed a significant threat to U.S. national security.

Inside sources have hinted that the Pentagon and Energy Department were in support of placing Honor on the blacklist, while the Commerce and State Departments opposed the move.

This has not been the first time news of the possible blacklist of Honor has been voiced. Recently, some House Republicans had also mooted the idea of extending Huawei’s ban to Honor. There is a growing suspicion especially in the US political circuit that Honor remains an appendage of Huawei. There are thus political and economic considerations in combination with the critical national security considerations.

Huawei had continued to deny links with the Chinese government, likewise Honor. The company was on an aggressive roll in its deployment and development of 5G technology when it was suddenly hit by the US blacklisting, leading to a downward spiral of fortunes since 2019.

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The Chairman of Huawei Technologies has just stated that the company aims on returning to the smartphone ‘throne’ despite its handset operations being crippled by the US sanctions.

For those unaware, the former US President Donald Trump had enforced new sanctions on the Chinese tech giant and had it placed on the export blacklist back in 2019. This banned the company from sourcing key technologies that originate from the US, which affected its ability to design its own chips and acquire components from its supply chain. Company’s Chairman Guo Ping stated in a recent Q&A with staff “Everyone knows that phone chips need advanced technology in a small size with low power consumption. Huawei can design it, but no one can help us make it: we’re stuck.”

Although, Guo believes that this issue is solvable, adding that “Huawei will continue to exist in the field of mobile phones and with continuous advances in chip production, the smartphone throne will eventually return.” Despite being one of the largest smartphone makers in the world just two years ago, the brand has since fallen off the the top 5 vendor lists in recent times. Furthermore, the company even had to sell off its budget smartphone unit, Honor, to keep the brand alive.

As of right now, Huawei’s revenue has declined by 29 percent in the first half of this year, which marks its biggest fall. The fall in revenue was especially notable in its consumer business operations like smartphones that saw a sizeable 47 percent decline in revenue, falling to 135.7 billion Yuan (roughly 21 billion US Dollars).

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Arm has just announced that its latest A9 architecture could potentially be licensed to Huawei Technologies. This could ease the latter’s supply chain issues and is possible since the new chip technology is of British origin.

According to a SCMP report, the British chip maker will be able to supply the Chinese tech giant with its latest chips since it is not subject to the US trade regulations. This would undoubtedly be great news for Huawei, as its advanced chip designer unit HiSilicon has lost access to advanced chip technology that originated from America due to US sanctions.

Ian Smythe, vice-president of solutions marketing at the Arm stated during a media event in Beijing earlier this week that “Following a comprehensive review, Arm has determined that its Arm v9 architecture is not subject to the US Export Administration Regulations.” He further added that the company has also shared its review to the appropriate US government agencies as well.

For those unaware, ARM sells processor designs and licenses its instruction set to various companies including, Apple, Samsung Electronics, and even Qualcomm. In other words, the company’s technology has a big impact on the smartphone industry, which is now also gaining a foothold in other markets such as personal computers and servers.

Its new V9 architecture that was launched by Arm earlier this week in the UK can be licensed to HiSilicon as it is not covered by US restrictions, as per a company spokesperson. Although, it is unknown if Huawei has moved to license the chip maker’s new V9 architecture and has also yet to comment on the matter. So, stay tuned for more updates.

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Huawei is working on addressing the various security risks and national security concerns that surrounds it across the globe, as stated by the company’s official in a recent interview.

In a recent interview with Bloomberg, Andy Purdy, chief technology officer of Huawei Technologies Co.’s U.S. operations, stated that it is  currently discussing the ‘prospects’ for the company amid frictions between the world’s two largest economies, the US and China. Last week, the US Federal Communications Commission stated that telecommunications and video surveillance made by five Chinese companies including Huawei “pose an unacceptable risk to the national security.”

Earlier this week, the FCC moved towards banning China Unicom and ComNet from the US entirely. Purdy added that the it also too early to tell if the new Biden administration would be better than the previous one. Furthermore, the executive also added that the company is focusing on its “ability to do business in the United States,” while recognizing the COVID-19 having a major impact on the nation’s economy.

Previously, we had reported on the US government had imposed a new restriction on Huawei suppliers over 5G technology licensing. Furthermore, when asked about its efforts in addressing the allegations regarding the company being a security threat, Andy stated that the firm has made “tremendous developments.” The official said that the company is focusing globally, especially with the European Union, pushing for “objective standards” for telecom operators and equipment suppliers, which the brand hopes would inform the US government and help alleviate the national security concerns the company faces.

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4G devices are still a prime priority in many countries even as 5G is picking up steam. And as if the existing problems weren’t enough, a new report says the 4G, 5G SoCs. And its components are facing a shortage in supply.

Digitimes report says that according to a few IC distribution sources, there is a good deal of demand for 4G, and 5G SoCs. This is a no-brainer but sources say that their supply is facing a shortage. One of the reasons is reportedly the shortage of PA components for both 4G and 5G models. Here, PA refers to Power Amplifiers that filters, amplifies network frequency while selecting a home network(local).

Also, as per the report, the main reason for the shortage of 4G SoCs is due to Huawei’s heavy stockpiling of IC components. The company had to do it in order to evade an impending shortage it could face after the reinforced restrictions of the US that took effect from September 15. The report adds that PA components are frequently present on IoT devices these days apart from Smartphones.

As a result, IDMs(Integrated Device Manufacturers) including Skyworks have extended the delivery time of FR. And PA components to 8-12 weeks. For the unware, Skyworks(Skywork Solutions Inc.,) is a US-based semiconductor company. It manufactures RF(Radio Frequency), and mobile communication systems. Coming back, if the report is true, the squeeze on supply will relax before 2020 ends.

However, despite a steady demand from China, the procurement figures of 5G SoCs will largely depend on the sale of 5G devices in the upcoming Double Eleven festival. And New Year Holidays in China. This is understandable considering 5G devices are wildly popular in China. And its  5G deployment is ahead of the rest of the world.

Although the IC distributors will have to adjust the inventories as per the fluctuating demand, they will reportedly flourish in Logic. And Analog IC shipments including memory chips for desktop and notebooks(laptops) as work from home situation still exists.

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Huawei is seeing a sharp decline in its growth as the impacts of the US sanctions take hold. In the third quarter, the company saw its margins dip as the reinforced regulation disrupt its operations.

According to a CNBC report, the Chinese tech giant had brought in 217.3 billion yuan (roughly 31.91 billion US Dollars) in revenue in September 2020. This marks a slight growth of 3.7 percent from 209.5 billion yuan from last year (roughly 31 billion US Dollars). The first nine months combined had the company bring in 671 billion yuan (roughly 98.57 billion US Dollars) in revenue, which marks a growth of 9.9 percent from the same period last year.

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This showcases a significant slowdown in growth as the first nine months of 2019 had the Chinese smartphone maker sees revenue growth of 24.4 percent over 2018. Furthermore, Huawei’s net profit margins were 8 percent for the first nine months, which was also lower than the 8.7 percent from back in 2019. The effects of the recent US sanctions are clearly showing its effects on the consumer electronics brand.

For those unaware, Huawei was placed on the Entity List back in 2019, and since then faced various pressures from Washington. The ban had also caused the company to lose Google support for its Android smartphones. This meant that its overseas smartphone business fell sharply during, despite its home market still thriving. Additionally, losing its primary chip supplier TSMC was another major blow to the company earlier this year.

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With the US crack down hard on Huawei intensifying, the effects of the recent sanctions have started to show, with a DigiTimes report revealing that the Chinese tech giant has slowed down its production of smartphones.

Amidst the stricter regulations being placed upon Huawei, the company has had to slow down its pace of orders from its handset ODMs. For those unaware, the US has been successful in cutting chip supply to the Chinese vendor. After the company lost TSMC as its primary chip supplier, the US government also amended its regulations to further hamper its supply chain. Now, Huawei can’t source technology that has originated from America, without a special license being issued.

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Being a major player in the smartphone market, this means that the company stands to lose a lot of grounds in the market share. In other words, we can expect other companies to fill in the void created within the market. According to sources close to a certain Chinese handset ODM, the company is reducing its orders to better cope with the intensifying pressure from the US Government.

Since Huawei lost Google support on its Android smartphones, the company has faced a decline in its various overseas markets. This means that China is currently its largest and most important market. So, the slowed pace of smartphone output could noticeably hamper its smartphone sales in the region in 2020. We can also expect other Chinese OEMs like Xiaomi, Oppo, and Vivo to take advantage of the situation.

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With the US deadline fast approaching, Huawei and its suppliers are rushing to meet the shipping goals for mobile chips for the Chinese tech giant. An industry source close to the matter has revealed that the company is fighting for survival after pressures from recent US sanctions.

According to a Nikkei report, Huawei Technologies is stockpiling 5G mobile processors, WiFi, radio frequency, display drivers, and other key components from chip developers. The suppliers include major names like MediaTek, Realtek, Novatek RichWave, and more. The race to meet the shipping goals arrives as the US deadline is right around the corner.

For those unaware, the US government had previously announced on 17th August 2020 that foreign chipmakers are banned from supplying chips that use American technology to the Chinese smartphone maker. To do so, one must acquire a special license issued by the government. However, to account for existing orders, the suppliers were permitted to complete such transactions but with a deadline that lasts only till midnight of 14th September 2020, which is less than a month away now.

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Analysts have predicted that Huawei’s smartphone shipments could possibly fall by as much as 75 percent next year if it runs out of these crucial parts. Thus, to meet the tight schedule and deadline, chipmakers have agreed to ship half-finished products or wafers that have note been tested or assembled. Generally, complex integrated circuits built on to wafers which are then processed for packaging and testing when chips are made.

A source stated that “It’s not unusual for Huawei to call suppliers at 4 a.m. or have conference calls at midnight recently. Huawei is in a chaotic survival mode now, and changing its own plans constantly recently.” While another industry insider said that “We will fully comply with U.S. regulation but try to meet customer’s needs. … We have only three weeks left that we can ship products to Huawei, so we will ship some finished chip products as well as some half-finished products or chip wafers just out of the plant that have not yet been packaged and tested.”

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A fresh report has revealed that Huawei Technologies is delaying the production of its flagship smartphones for 2020. The move arrives after the Chinese tech giant was hit with recent US sanctions, which caused it to lose its mobile chip supply from contract chipmaker, TSMC.

According to sources, Huawei has told its suppliers to delay production of the upcoming flagship models as the company weighs potential supply chain disruption following the new restrictions from the US. Reportedly, Huawei has asked for production halts for some of the components for the upcoming Huawei Mate 40 series. Furthermore, the company has also trimmed orders for certain parts in the next quarter.

At the moment, the Chinese smartphone vendor is assessing the impacts on its smartphone business after the new regulations were put in place. Following its annual schedule, Huawei usually launches the latest Mate series of premium grade handsets in the second half of the year. This period is generally packed with notable launches, such as Apple’s latest iPhone series and more.

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For those unaware, Huawei smartphones mostly feature the company’s proprietary Kirin processor from its subsidiary chip designer, HiSilicon. However, while Huawei designs its own chips, these are produced by TSMC. Thus, with the loss of its primary chip supplier, the company is reassessing the situation, looking into alternatives, and even investing in local semiconductor firms, with plans in the longer run.

According to a source, “We now see the postponement of the mass production of Mate series will be for at least one to two months.” In other words, Huawei is still finalizing and resolving issues within its supply chain, and also reviewings its stock of existing chips. An executive of a Huawei supplier stated that, “One of the reasons to pause is that Huawei is reviewing the inventory level of its HiSilicon mobile chips and is busy verifying other mobile platforms by MediaTek and Qualcomm. But verifying other mobile platforms could lead to redesigns of the mechanical parts of the smartphones, which will take time.”

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The recent US sanctions against Huawei Technologies might have a far reaching impact on the entire US tech industry as a whole. While the Chinese company has lost its chip supply from TSMC, US based companies fear that this move from the Government might end up scaring away its customers.

Back in 2019, Huawei had faced a trade ban by the US Commerce Department. This move caused the Chinese tech giant to lose billions of dollars in revenue. Moving forward by a year, the situation has still not gotten any better with recent sanctions restricting the company’s supply as well. But now, this move may create a bigger gap between the US and Chinese supply chains.

According to an executive of a California-based semiconductor company, “securing new clients in China, or even in Asia, could be more challenging from now on as prospective clients would think twice before they buy American equipment or technologies like ours.” The Chinese market accounted for more than 60 percent of the global semiconductor consumption in 2019. So, the shift away from the US suppliers could potentially hard domestic businesses in America.

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The executive also added that despite the California based company does not directly supply Huawei, “a lot of Chinese tech companies, those buying from us included, have some sorts of relationships with Huawei. There is no way to know whether what we sell to a non-Huawei company will not eventually become part of a Huawei product.” In other words, the US products may eventually be reaching the blacklisted Chinese company.

This translates to potential complications with the US government since the new sanctions dictate that a special license must be obtained to provide products to blacklisted companies. Thus, the unclear nature of the entire transaction and trade could harm the US based companies if their technology is found being used by companies like Huawei later on.

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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.

The recent sanctions from the US government had cut off the chip supply to Huawei, but it seems that the company had already prepared in advance. It currently has an inventory that will last for 1.5 or up to 2 years. However, analysts have claimed that the reliance on stockpiled chips could end up hindering the company’s competitiveness.

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Huawei had recently revealed that it had spent 167.7 billion Yuan ($23.45 billion) in stockpiling chipsets, components, and more in 2019, which is a significant jump of 73 percent from 2018. In particular, it seems that Huawei was more focused on building reserves for programmable chips from Xilinx, since it’s difficult to replace the processors at the moment, even from its own chip designer, HiSilicon.

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.

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Earlier this week, it was revealed that US regulators are open to making changes that will help in fixing loopholes within the new sanctions that may allow Huawei to still receive US chipsets.

For those unaware, Huawei had its mobile processor from TSMC cut off earlier this month by the US Department of Commerce. While this was done to hinder the company’s operations within the US, it also pressurized the company to conform to American regulations. At the moment, the Chinese tech giant will require special licenses to acquire semiconductors made overseas but utilized US made technology.

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In other words, TSMC is no longer taking orders from Huawei. However, a loophole of this rule is that this rule only covers chips designed by Huawei (HiSilicon Kirin). These do not include shipments that are sent directly to Huawei’s customers, something certain industry lawyers see as a potential loophole. Thus, US regulators are aiming at plugging this gap within the new set of regulations.

According to the US State Department, the new rule will “give us a great deal more information upon which to base export control decisions as we move forward and try to find the right answer to these challenges including by adapting, if we need to, if Huawei tries to work around our rules in some way,” adding that these steps are “necessary,” as the Trump administration looks at the consumer product maker as a security threat.

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The recent sanctions employed by the US have made a devastating impact on Huawei‘s operations. The Chinese tech giant has had its crucial mobile chipset supply cutoff from TSMC, the largest contract chipmaker, and is currently investing in Chinese semiconductors for a replacement. Now, a Huawei exec from the US has responded to this crisis, revealing a two way negative effect of this move.

Andy Purdy, the US Chief Security Officer for Huawei, appeared on television (Bloomberg and CNN) and was asked regarding the impacts of this new set of regulations. According to Purdy, the company will survive this event and will eventually adapt to this, the problem will mostly be borne by American employees and companies. He stated that Huawei will face troubles in the short run, due to the forced shift in technology, but the company will eventuall turn things around.

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When questioned about the survival and the massive loss of revenue, the Andy Purdy mentioned that the primary concern should fall on the 40,000 to 50,000 employees from both Huawei and the American firms that work with the Chinese company that work will lose their jobs. Furthermore, these 300 or more so American companies that sell to Huawei will also see a drastic impact on their own operations.

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In a bid to move more Huawei subsidiaries into its Entity List, the US Department of Commerce has now flagged Huawei India as well. This arrives after the Trump administration cut off chip supplies from TSMC to Huawei and is a move to pressure the Chinese group further.

In recent weeks, the trade dispute between the US and China have risen again, despite the ongoing Coronavirus pandemic affecting both nations. The former had often accused Huawei Technologies of being a front for the Chinese government and alleged espionage, which the latter and the consumer electronics vendor denied on numerous occasions. Now, Huawei and more of its affiliates based out of the US have been added to the Entity List, where they face a trade ban.

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For those unaware, the Entity List by the US Commerce Department is essentially a blacklist that bans companies or organizations found in the list to interact with US based companies. In other words, cutting off trade, technology, collaboration, and more. According to the US, “Huawei is an untrustworthy vendor and a tool of the Chinese Communist Party, beholden to its orders.”

Thus, even Huawei Technologies India Private Limited has been added to the list. The US State Department stated that they have “engaged for more than a year to share what we know about Huawei and other untrustworthy vendors with allies and partners around the world.” So by banning the Chinese group, the country is effectively cutting off any “loopholes” that Huawei was using to exploit US technology and threaten national security.

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The world’s largest smartphone manufacturer, Samsung, has had stiff competition with Huawei for the top spot in the global market. However, it seems like the US ban against the Chinese tech giant will benefit the South Korean vendor.

For those unaware, the US extended the ban on Huawei and its subsidiaries over various concerns data security. While the Chinese smartphone OEM has often denied any such accusations, it has had its operations troubled since the start of 2019 and even now. Recently, the US Commerce Department introduced new sanctions, which effectively cut off chip supply from TSMC to Huawei.

Back in 2019, Huawei had lost Google services support and now it has lost its major chip supplier as well. This could translate to an advantage for Samsung, as the market lost by Huawei could be more footing gained by the South Korean company. While this may not be applicable overall, especially in regions like China, Samsung can still gain market in European countries.

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According to an analyst from NH Investment & Securities, “Last year, Huawei’s market share went down because it could not use Google Mobile Services on its products amid the U.S-China trade war, but this time, it might face a production problem. As Huawei sees damage, Samsung’s smartphone business can expand.”

Interestingly, Samsung is also a major supplier of smartphone components like image sensors, OLED displays, and, soon, 5G modems for budget and mid level smartphone entries. So, even if it gains market standing in certain regions, the company can still lose out on orders from Huawei, that featured Samsung OLED displays and camera technology.

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Earlier this year, the US government had proposed actions that could potentially hamper Huawei‘s operations globally by limiting chip supplies to the Chinese tech giant. Now, the company in the Huawei Analyst Summit 2020 event officially responded to these recent sanctions, stating that it could affect various global industries apart from just Huawei.

During the conference which was streamed online, officials stated that the company had complied with all government rules and regulations with the original trade ban back in 2019. However, the recent sanctions that are directly against the company have made Huawei actively oppose the amendments made by the US Department of Commerce. Furthermore, these sanctions could also be used to pressure other industries as well.

Huawei officials said that the US government has proceeded with such measures despite negative feedback and concerns expressed by “many companies and industry associations.” Rather, these actions can also be used to “undermine” industries worldwide, including more than 3 billion Huawei users. According to Huawei, the actions may hamper its expansion, maintenance, and operations in more than 170 countries.

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This move will seek to interrupt a network chain worth hundreds of millions of dollars and could have a serious impact on a wide range of industries across the globe. Huawei called out the United State’s bullying attitude stating they are taking advantage of their “own technological strengths in an attempt to crush industries outside its borders.” In other words, undertake discriminating policies against foreign multinational corporations.

The US sanctions that have limited chip supply from TSMC to Huawei could have far reaching implications. The company believes that this move can damage the “trust and collaboration” with the semiconductor industry, which is an integral part of various other industries as well. They also added that in the long run, these actions might hurt the US itself by creating a distrust in foreign companies that may not deal with “US technologies or supply chains” in the future due to sanctions like these.

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The US Department of Commerce has nearly signed off on a new rule that will allow Huawei Technologies to work with American based companies on setting standards for 5G networking, according to sources.

This is big news considering the US Commerce Department had previously placed Huawei in the “Entity List” back in 2019. This blacklisting had banned the Chinese tech giant to buy or trade with US based companies and even had it lose Google’s support. The ban also placed various restrictions on Huawei, as it was also working on providing 5G equipment to various companies in the region. For those unaware, Huawei is a pioneering figure in 5G networking and a known telecommunications equipment provider.

But now, it seems that the US government is backtracking on the decision from 2019, as it plans on bringing Huawei’s influence back into the market. Industry and Government officials stated that the move to ban Huawei had only served to put the US at a disadvantage. This is interesting as the US was also to put pressure on certain European regions to ban Huawei as well.

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According to sources, standard setting meetings where different protocols and specifications are discussed to allow equipment from different companies to function together had failed after US engineers sat back in silence after the Huawei ban. But after nearly a year of scrutiny, the Commerce Department is now close to drafting a new rule that will address the current situation. The rule is still subject to change but essentially allows US companies to participate in standard bodies with Huawei also being a member.

The draft is currently undergoing final review and will be cleared if other agencies also offer their approval on the matter. The process is long and it is uncertain if other agencies have any objections on the subject. This could be a move from the US to gain a better footing over China in the ongoing 5G race. Recently, we had reported on the topic with China seeming to edge past the western nation in this regard. Thus, the US easing restriction on Huawei could be a sign of friction lowering for the electronics vendor.

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In a recent interview, Ren Zhengfei, the founder and CEO of Huawei Technologies, revealed that the company had spent more than 132 billion Yuan (roughly 18.7 billion US Dollars) on US parts for its smartphones and is not looking to find replacements yet.

Huawei has been caught in the middle of the trade wars between China and the US. The company was placed on the “Entity List” last year and had even lost support from Google. Despite all of this, the Chinese tech giant has been steadfast about its sourcing, with the senior executive stating that the company will not look for replacements. According to Zhengfei, Huawei has spent 18 billion US Dollars in 2019, which is a large increase from just 11 billion US dollars before that.

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Yesterday, we had covered similar statements that Ren had mentioned in the interview. The CEO emphasized greatly on maintaining a friendly relationship with its foreign supply chains, especially from the US, and believes that America “will always be our good friend.” Furthermore, Another senior official had also revealed that alternatives were available but they continue with US parts “to maintain good relationships with its American suppliers.”

Interestingly, Ren Zhengfei stated that “The proposal of a few US politicians does not fully represent the opinion of the US government. Many US companies have been approved by the US Department of Commerce to supply us with spare parts.” Thus, the Founder believes that there is no pressuring reason to shift sourcing from the region in favor of other countries or even it’s home country. The recently launched flagship Huawei P40 series serves as a great example as the internals did arrive with a few but the important US made parts from Qualcomm, Skyworks, Qorvo, and more.

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Back in early 2019, Huawei had been hit with a ban from the US, that placed the company in the “Entity List.” Since then, the company’s operations have been severely hampered while it has also lost support from Google, due to the blacklist. While the company did launch its own alternatives, it seems the transition wasn’t as simple as they wished, with the company reportedly losing out on billions of dollars.

According to Eric Xu, the Deputy Chairman and Rotating Chairman of Huawei, the company has lost out on nearly 12 billion US Dollars in 2019. Apparently, Huawei’s previous projections regarding the year had an estimated 135 billion US Dollars. However, the company has fallen just short of the amount, which was directly related to the various “US sanctions” that were against the Chinese tech giant.

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A major chunk of the shortfall arrived from Huawei’s consumer division that accounts for over 54 percent of the company’s total sales in 2019. Xu stated that “it is the consumer business of Huawei that was hurt the most.” In other words, smartphones, tablets, laptops and more were affected by the US blacklisting. Reportedly, these consumer grade electronics products brought in 66.93 billion US Dollars in revenue in 2019, which was about 10 billion US Dollars less than what the company was originally targetting.

For those unaware, after the US ban, Huawei could not trade or buy products/services from US based companies. This caused it to lose Google’s mobile services, which in turn meant that Huawei smartphones now had to ship with vanilla Android. Thus, this caused the development of the HMS (Huawei Mobile Services), but unfortunately, the platform is still in its nascent stages. Huawei’s partnership with Google also meant that both companies profited greatly from one another, but that has since been terminated.

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Update:

Huawei has clarified that all the parts used inside the P40 have been obtained legally and in compliance to export control regulations of the US. The company’s official statement is added below:

“Huawei has always complied with any export control regulations of various countries, including the United States. All the product materials are obtained legally from our global partners, and we insist on working with our partners to provide consumers with high-quality products and services.” 

Huawei has been found to still be using US-made components in its latest flagship model, the P40, despite having been banned and blacklisted by the US Government last year.

Back in 2019, Huawei was blacklisted and placed in the “Entity List” by the US Commerce Department. This banned the Chinese tech giant from buying or selling products to or from other US based companies. Google is one such example as the company can no longer ship its smartphones with Google Play services or other Google apps.

Now, a report from Financial Times has revealed through a breakdown of the Huawei P40, that the device still features parts made in the US. The device was recently launched by the company and is its latest flagship model. But for those unaware, American based companies are specifically prohibited from selling components to Huawei, unless they receive a special license and authorization.

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The Trump administration has been open with its accusations of the Chinese group on the grounds of spying and espionage. This has caused Huawei to look for other alternatives since then for internals for its devices. The disassembly was carried out by XYZone, a company based in Shenzhen, China, and is known for disassembling and identifying the brands that supplied the internal components.

So now we will have to wait for Huawei’s official response to this new dilemma. Thus, it remains to be seen if the US government takes any actions against the telecommunications giant, especially a legal course of lawsuits. So stay tuned for more reports regarding this.

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Earlier this week, the US Department of Commerce announced that it will be extending the license which allowed US based companies to continue working with Huawei Technologies Co Ltd, the Chinese tech giant, until the 15th of May 2020.

For those unaware, Huawei was hit with a ban back in 2019, which had the company lose partnering rights with US based companies. But since then, special licenses were granted to companies that applied for it, to allow temporary collaboration with the Chinese electronics company. Now, it seems like Huawei has received another boon as the Trump administration has just extended the licenses till 15th May.

The original license was a temporary measure and had already been extended till 1st April 2020. Through the license, companies like Microsoft can continue providing their services to Huawei, like Window’s for laptops as an example. Although the ban was enforced, the US Commerce Department had allowed it to still purchase from US companies to avoid disruption in the market.

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Huawei is a leading figure in telecommunications and by its extension 5G networking. The company provides relatively more affordable equipment and tools and had already been providing the same for 4G modems to certain US telecom providers. So on a larger scale, banning Huwaei would have affected US customers. Thus, licenses were issued and the Commerce Department even made a public statement asking about the “impact on your company or organization if the temporary general license is not extended?”

This was mainly targetted at rural carries in America which provided services to customers in remotes region with the United States. Similar to Huawei, ZTE Corp was also designated as a national security risk. So, the move arrives as a breath of fresh air to Huawei that can see continued operations for a couple of months longer in the region.

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In recent times, Huawei has been facing troubles in the west. The tech giant had faced a ban in the US back in 2019, and its aftershocks can still be observed. The company has faced various accusations around this time as well, and while the US is actively working on hampering its operations in the west, Huawei is reportedly trying to reduce its reliance on US based technologies themselves.

As it stands right now, the various allegations of espionage, links to the Chinese government, risk of security, is but a few of the accusations Huawei has faced from the US. The same can even be said to certain European regions as well, where the US is also applying pressure. However, the company is standing on its resolve of becoming completely self sufficient as it is further trying to reduce the US based technological aspects it currently applies to its offerings.

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To become completely independent, the company has focused its efforts on developing its own core technologies. These include it’s in house chip manufacturing processes, design and more. The move will make Huawei completely self dependent but would affect the various Taiwanese companies that Huawei often works with.

Various suppliers will lose out deals or contracts that be valued for a very high sum. However, the supply of technologies like display driver chips, sensors, wireless transmission chips, and analog chips will still be contracted to suppliers, considering that the company is focusing on Core areas only, for now. Currently, Huawei is working on making its own processors and AI chips while simultaneously working on wired and wireless connectivity chips as well, which should roll out by Q2 of 2020.

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Huawei, the smartphone manufacturer, has been facing complications with the US Government. It first started out as data security accusations that affected the Chinese tech giant’s operations in the western nation and soon even saw it being banned from accessing various US based technological components and software as well. The restrictions had seemed to ease up by a bit at the end of 2019 but are now expected to become even more strict in 2020

Ren Zhenfei, Co-Founder of Huawei group has previously stated that he expects US to take severe actions against the Chinese OEM in 2020, which has now turned out to be true. Since, US Commerce department’s Secretary, Wilbur Ross, revealed that plans are underway to step up the trade ban against Huawei. This will further prevent trade relations with more firms that are based in the US.

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Reportedly, companies from the US can export products and components to Huawei only if 75 percent of the end product is sourced and made in foreign lands. However, the US Commerce Department is hinting that it would raise this number to 90 percent, which means Huawei can only source 10 percent of its product from US based corporations. The restrictions do not end there since more actions are expected to soon follow as reports suggest that the US Government is considering a separate regulation for the Chinese OEM altogether.

The founder of Huwaei has stated that the company is better equipped than last year to survive further attacks from the US Government. But we will have to wait and see how the situation pans out for the company and what impacts the US-China trade deals bring to the deteriorating trade relations between the East and West.

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Huawei is one of the world’s most recognized electronics brands with gadgets ranges varying from everyday household products to smartphones, tablets, and laptops. Currently, the company is the world’s second-largest smartphone maker. However, being No. 2 isn’t enough for the company as Huawei’s CEO Yu Chendong said in an post-launch conference interview that the company was well on its way to become the world’s number one in 2019 if not for the U.S. Ban.

Earlier this year, the Chinese tech giant had its foreign operations crippled as the company was placed on the Entity List by the U.S. Commerce Department. This essentially blacklisted Huawei and banned American based companies like Google to have trade or business relations with the company. After being cut off from Google, the company lost Android OS (the primary OS found in its devices) and even its ARM-based chipsets that powered its devices.

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Just prior to the ban, Huawei had managed to take the number two spot away from Apple as the largest smartphone brand in the world. So it is not farfetched to assume that Huawei had a real chance of snatching the top spot from Samsung as well.

According to Richard, Huawei would’ve been the world’s number one brand if not for the ban this year itself. Furthermore, he said that people falsely assume that the brand is popular due to China and the Chinese people being patriotic; and went on to further back this statement with Huawei M6 tablet which reportedly sold over 2 million units worldwide. The senior executive stated that the most important reason for achieving such results is user satisfaction and not patriotism.

Going Forward, Huawei is seemingly confident about its future. Its indigenously built HarmonyOS or HongMengOS is expected to arrive in 2020 whilst the company plans on expanding further in the European regions.

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Earlier this year, the US government put Huawei in a tough spot after adding it to the Entity List. Given that Huawei sources a lot of components for its smartphones as well as networking infrastructure from the US, this was a big blow to the Chinese telecommunications giant. However, according to the comments from Huawei’s President of Global Affairs, Victor Zhang, things were probably not as bad as we thought because of the company’s ‘Business Sustainable Management’ strategy.

In an interview with Xinhuanet in London, Victor revealed that Huawei established a strategy nearly 10 years ago wherein the company has two sources of supply for each component. This along with stockpiling essential components likely should have helped the company sustain the US ban for the past few months. But it’s worth adding that there are some essential components which don’t have an alternative, at least not right now, like Google’s Mobile Services for Android.

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He further revealed that in the context of globalization, components aren’t 100% self-produced. So, it becomes necessary to cooperate with upstream and downstream industry chain to ensure the stability of product supply. He added that Huawei invests more than 10% of its sales revenue every year. There are more than 80,000 people working in R&D in the company right now, which accounts for 45% of the company’s workforce.

While talking about UK’s scene, Victor said that Huawei has invested more than £100 million ($126 million) in the UK, with over 300 engineers working in fields such as AI and 5G. This number is further expected to increase to 400 in 2019. A new R&D center in Cambridge is also in the works. 

At present, Huawei has more than 2.500 patents in 5G with a total investment of more than $4 billion. 

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Huawei has been dominating the headlines this past week but unfortunately, it is not because of the latest phone or other products that the company launched. Instead, the company has been in the news because of the trade blacklist which the US government slapped on the Chinese company. This blacklist has triggered a chain reaction of response from US companies and allies in compliance with the ban. Companies like Google, Intel, Qualcomm, ARM and the SD Association have all severed ties with the firm as a component of the U.S. request.

The U.S. government’s trade blacklist against Huawei comes in the midst of rising pressures between the nation and China. The clampdown by the US has driven some to ponder whether China would counter with its own sanctions against U.S. tech firms like Apple. However, Huawei founder Ren Zhengfei has disclosed in an interview with Bloomberg that he would protest a Chinese boycott against Apple, even referring to the Cupertino-based organization as his “teacher”.

“That will not happen, first of all. And second of all, if that happens, I’ll be the first to protest,” Ren was quoted to have said. “Apple is my teacher, it’s in the lead. As a student, why go against my teacher? Never,” he added.

However, Ren conceded that the U.S. boycott has had some impact on Huawei’s 5G lead, but insisted that the company would be able to deliver solutions to fill the gap. He didn’t disclose any timeline for these replacement solutions to come into effect.

Notwithstanding Ren’s comments, we believe China is working on its own set of boycotts that would be slammed on US companies but we can’t say if that will resolve anything. Let us know what you think in the comments section.

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