Huawei might be stepping in to fill the void left by Nvidia in the Chinese market. Following the export ban from the US, Huawei officially announced the Ascend 920, which is its fastest AI chipset. The timing of the announcement is oddly coincidental and could be arriving at a big cost to Nvidia. So here’s what we know.

How the Huawei Ascend 920 AI Chip is Changing the Game

For those unaware, the United States announced stricter restrictions on the import of AI chips, which affects chipmaking giant, Nvidia. The company managed to circumvent previous regulations to sell its Nvidia H20 processors in the Chinese market. However, the latest export ban could be cracking down on this. But with AI growing exponentially in the region, Huawei’s new announcement arrives at the perfect time to fill in the gap.

As per the official announcement, the new Ascend 920 will hit mass production later this year and is based on SMIC’s 6nm process. It promises to offer up to 900 TFLOPS of BF16 compute and 4000GB/s of memory bandwidth. This chip is supported by HBM3 memory modules and will also support PCI 5.0, along with next gen interconnect protocols to help large model training. With this chip, the company could replace the Nvidia H20 by being an effective alternative.

To recall, the H20 is being used by other Chinese tech giants like Tencent and ByteDance. But after these new US restrictions, the Ascend 920 might be the next in line. The current gen Ascend 910C offers around 60 percent of the Nvidia H100’s performance, while the Ascend 920 possibly offering training efficiency by 30 to 40 percent.

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China based firms that were previously targeted by the ban imposed by the Trump administration are now considering filing lawsuits against the US government. This news arrives after a federal judge suspended a similar ban earlier this month, which was imposed on Xiaomi.

According to a Reuters report, lawyers close the matter with a few of the blacklisted Chinese companies are in talks with various law firms like Steptoe & Johnson and Hogan Lovells. These firms are eyeing a lawsuit after US District Judge Rudolph Contreras’s preliminary order halted the inclusion of Chinese tech giant, Xiaomi, on the list of companies that allegedly have ties to the Chinese military. For those unaware, these blacklisted firms faced an investment ban in the US.

As per Wendy Wysong, managing partner of the Hong Kong office of Steptoe & Johnson, “Companies are reaching out to lawyers to challenge the listings and the grounds for the listings.” However, Wysong and sources close to the matter from Hogan Lovells have declined to name the companies involved in discussions. Notably, the process for including companies in the investment ban has been called “deeply flawed” by Contreras.

This is due to blacklisted companies on two key criteria, which is its development of 5G technology  and artificial intelligence. The latter is what the Defense Department alleges are “essential to modern military operations.” Washington lawyer Brian Egan stated that “The facts that led to Xiaomi’s designation are almost laughable, and I think it absolutely is going to lead to additional companies seeking relief.”

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Drone maker DJI technology currently dominates the consumer drone market, controlling about 60% of the market. The US government recently restricted the company’s access to chips and other components by placing it in the same entity that had Huawei, ByteDance, SMIC, and others.

The US ban is already taking its toll on the company’s North American business, according to a Reuters report. The report shows that DJI’s North American business concern is presently plagued by internal wrangling which is an offshoot of the US ban.

Although DJI still performing well in the market, the company decided to cut its staff strength to reflect the ban. One-third of its entire staff strength of 200 persons in the US were reportedly laid off. As a result, some key managers decided to resign and take their services to rival companies. For instance, the head of DJI’s R&D team is reported to have resigned in February as a result of his displeasure over the job cuts. After the resignation, the company is said to have laid off the remaining ten R&D staff at its Palo Alto, California flagship research center.

Although some of the key execs who have resigned projects that the ban could affect the growth of the company but DJI’s founder Frank Wang insists that the company’s North American sales were growing strongly.

“Despite misleading claims from competitors, our enterprise customers understand how DJI products provide robust data security. Despite gossip from anonymous sources, DJI is committed to serving the North American market,” he added.

The US ban has led to the growth of rivals such as US firm Skydio but the company focuses on military drones. Thus, DJI’s market share in the consumer drone market may not be under too much stress.

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US firms like the Lam Research Corp and Applied Materials Inc are struggling to obtain an export licenses from the US government to sell chip related equipment to SMIC, China’s largest chip maker.

According to a Reuters report, the US government has been slow to approve the license for American companies, despite the ongoing global chip shortage. Furthermore, licenses for the US suppliers, which are estimated to ship equipment and materials worth 5 billion US Dollars, have yet to be granted. At the moment, it is reported that some licenses have been granted to certain firms, which included a small number of expensive equipment.

After the Chinese semiconductor based firm was banned, the US government faced multiple complaints from American companies that traded with SMIC. But as policy shifts with the arrival of a new US President, Joe Biden, it remains uncertain what direction the administration would take in dealing with Chinese firms like SMIC, which produces chips for various American brands like Qualcomm and others.

For those unaware, SMIC faced the export trade ban after the Trump administration accused the company of having ties with China’s military. It was placed on the Entity List as well, which would require US based firms to acquire a license from the government before selling equipment or materials with the blacklisted firm. The new administration has yet to make a decision on the license application, but the verdict is expected to arrive within a month, so stay tuned for more as we will be providing updates.

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The Biden administration is planning on implementing a regulation that first surfaced back during the term of the former President Donald Trump. The rule targets Chinese tech firms that are designated as a threat to the US.

According to a Reuters report, the news arrives despite the objections from US based businesses. During the final days of the Trump administration, the US Commerce Department had issued an interim final rule that aimed at addressing information and communications technology supply chain concerns. The department had said that this rule would become effective after a 60 day period of public comment.

As per a spokesperson of the department, the agency would be accepting a public comment on the rule until 22nd March 2021, which is also when it would go into effect. In the statement, it was said that “Trustworthy information and communications technology and services are essential to our national and economic security and remains a top priority for the Biden Harris administration.”

However, the U.S. Chamber of Commerce and groups that represent major industries stated in a letter that this interim rule gave the agency “nearly unlimited authority to intervene in virtually any commercial transaction between U.S. companies and their foreign counterparts that involves technology, with little to no due process, accountability, transparency, or coordination with other government programs.”

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Ever the US sanctions ended chip supply from TSMC to Huawei, the Chinese tech giant had placed its bets on various Chinese chipmakers and even started a few joint projects as well. However, it seems that the company might have just been abandoned by these semiconductor based companies in its home country.

For those unaware, the US had enforced new restrictions that cut off Huawei’s chip supply. Ever since then, rumors and reports had surfaced pointing at the company looking into alternatives through other companies like MediaTek and Qualcomm. But recent sanctions have reinforced the restrictions, as Huawei and its suppliers now are required to obtain a special license if they use American made technologies. This caused the company to go into “survival mode,” with the deadline being September 15.

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According to a DigiTimes report, Huawei had been aggressively stockpiling on chips just before the deadline. And now, any additional shipments have been suspended. But the issues for the Chinese smartphone maker doesn’t stop there as it is being reported that Chinese chipmakers have also quietly suspended shipments to Huawei. This ao includes all the joint development projects the companies had been working on together.

The reason for this is apparently due to fear of being targetted by the US for supplying Huawei. Industry sources close to the matter have revealed that the local chipmakers have suspended shipments since the US might also pressure them for being in breach of the US trade restrictions. If true, this would add another obstacle in Huawei’s operations that would deal a devastating blow that will be felt once its chip inventory finally dries up.

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The chip exports from South Korea to China are expected to take a hit after recent US sanctions were adopted against Huawei. This is likely due to South Korea’s heavy reliance on the neighboring country.

According to a YonhapNewsAgency report, the recent regulations that sought to ban Huawei from sourcing semiconductors that were made using US technology, software, or design, might affect the overall South Korean chip export to China. For those unaware, the new sanctions now require suppliers to acquire a special license to supply Huawei, which is granted by the US government.

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This move affects Samsung Electronics, the world’s largest memory chipmaker, and SK Hynix, by having them stop sending semiconductor shipments to the Chinese company. Huawei is one of the top five customers for Samsung, while SK Hynix reportedly depends on the Chinese tech giant for over 10 percent of its total sales. Thus, the issue has a far more outreaching effect than just pressuring Huawei.

Industry sources close to the matter stated that South Korean exports will likely take a hit after recent US sanctions, due to their dependence on China. Reports have indicated that China accounted for 41 percent of all South Korean chip export in the first seven months of this year and was valued at 22.49 billion US Dollars. Similarly, Hong Kong came second in this regard, being evaluated at 11.38 billion US Dollars.

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Samsung Display is apparently seeking to acquire an export license to continue supplying Huawei. This arrives just before the US exports restrictions coming into effect by next week.

According to a Reuters report, the South Korean tech giant’s display unit is looking to supply the Chinese brand as per an industry source. However, the former has declined to comment on the matter at the moment. Notably, Apple is also a major customer of Samsung for its OLED displays. Earlier this week, Samsung Display’s rival, LG Display, said in a statement that the US sanctions on Huawei have no real effect on the company due to its limited number of shipments to the Chinese company.

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For those unaware, the US is tightening its restrictions against Huawei. The Trump administration reinforced certain regulations, which will make it harder for the telecom giant to acquire crucial components and technology that are American made or originate from the US. Thus, companies that wish to continue selling US technology must acquire a special license from the government.

Previously, the US Department of Commerce had announced similar restrictions, but only regarding the semiconductors that are crucial for its operations. Now, it has expanded the ban to include other components as well and US technology in general. At the moment, Huawei is in “Survival Mode” and it remains to be seen if Samsung Display does manage to acquire the license.

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Ren Zhengfei, the Founder of Huawei Technologies recently stated that the company has had to make multiple tweaks to various aspects of its product offerings, to cope with the increasing pressure from the US and its restrictions.

According to the senior official when addressing new employees, “We have had to modify thousands of electronic boards, replace parts, and algorithms to cope with … (the ban) from the US.” As per the South China Morning Post report, the US is cracking down hard on the Chinese tech giant. After losing its chip supply from TSMC, the Trump administration made supplying even more difficult for the company by reinforcing laws that regulate Huawei from receiving supplies from any company that uses American technology.

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This has greatly affected the company’s supply chain. Thus, in the Ren Zhengfei stated that Huawei makes constant changes to multiple parts and components in their products while also tweaking its algorithms as well, to better evolve against the US sanctions that seek to remove technology originating from the US. The founder even acknowledged the company’s dire situations at the moment.

He said that Huawei’s 90,000 members of the research and development team wouldn’t need to be so large if the company had access to “high-quality resources like Western companies.” While Huawei has recovered from the initial chip supply blow, the recent regulations have plunged the company back into survival mode to best endure its current situation.

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Earlier today (28th August 2020), MediaTek announced that it had applied for a license with the US government to supply Huawei, despite recent sanctions restricting the Chinese tech giant’s supply chain.

For those unaware, the Trump administration further tightened the restrictions on Huawei. The move came to ban the company from using any American made tools or equipment without the supplier acquiring a special license from the US Government. Despite the sanctions being aimed at Huawei, the effects were also felt by the Taiwanese chipmaker, who lost its share value in the market as well.

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According to a Reuters report, analysts have stated that MediaTek might be among the worst affected companies from the recent curbs. The company has stated that it will follow the global trade regulations and has also applied for permission to supply Huawei after 15th September 2020. Since Huawei lost TSMC as its primary chip supplier, MediaTek has seen an increase in orders from the Chinese company, so it is clear why the company wouldn’t want to miss out on a major customer.

While it remains to be seen how the US government responds to this, it seems highly unlikely that MediaTek would be granted a special license. In the past, other chipmakers like Qualcomm had also attempted to obtain permission to trade with Huawei. The US has stood firmly against Chinese firms like Huawei and ZTE, with recent trade regulations that have even tested their relationship with their respective suppliers.

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Earlier this week, Huawei stated that its procurement from Japanese suppliers grew by more than 50 percent from last year. This likely occurred due to recent sanctions that the US has employed to restrict the Chinese tech giant’s supply chain, as per a Nikkei report.

Jeff Wang, Chairman of Huawei Japan, said that the rise in sourcing from the region arrived due to Japan’s “extremely important role in global supply chains.” At the moment, the company has had its relations with its suppliers strained and tested after the US further added trade restrictions on Huawei, to close any loopholes in the previous sanctions.

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Wang refrained from mentioning the issues the company is facing with the US in the online conference. However, another executive stated that “We have procured from Japan since 2018, so I believe there will be no major impact.” This seems like a watered-down rhetoric in front of the actual gravity of the situation, as we had previously reported on Huawei currently being in a ‘Survival mode’.

The senior executive further stated the company has bought in roughly 1.1 trillion yen (roughly 10.3 billion US Dollars) worth of components already from Japanese companies, which is a significant rise from 721 billion yen from back in 2018. Huawei had first set up in Japan back in 2005 and is now heavily procuring components from the region, along with Taiwan and South Korea as well.

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The known chipmaker, Qualcomm, is reportedly lobbying the US Government to allow it to supply Huawei with chips for its 5G smartphones. According to a Wall Street Journal report, the chipmaker is trying to sell its 5G chips to the Chinese tech giant, which might end up helping American companies.

In its efforts, Qualcomm stated that the ban on Huawei isn’t preventing the company from acquiring necessary parts and is rather driving “billions of dollars” of possible US sales to foreign chip makers like Samsung and MediaTek. In other words, lifting the ban could actually end up helping American companies, making them more competitive.

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The US chipmaker also stated that there could be a “rapid shift in 5G chipset market share,” considering the restriction placed on them and not on their rivals. Furthermore, the company has been open about wanting to include Huawei as one of its customers, selling chips to every smartphone OEM, “including Huawei.”

At the moment, a few companies have received the license to conduct business with Huawei, like Intel, Micron, and Xilinx. Although Qualcomm isn’t looking for a massive change, the exemption being granted to the company might still be seen as a major weakening of the ban. Huawei’s smartphone operation is one of its key businesses and this could also come off as inconsistent, considering Google is still restricted from providing GMS support in Android smartphones from Huawei.

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Huawei and ZTE are definitely far from the United States’ favorite companies. The two tech giants have faced sanctions in recent years from the North American country. These sanctions have greatly affected their businesses and cost them millions of dollars. Unfortunately, their troubles are from over.

The United States’ Federal Communications Commission, yesterday, classified both companies as national security threats to the nation’s communications networks. The ruling is said to also affect their affiliates and subsidiaries.

With today’s orders, and based on the overwhelming weight of evidence, the bureau has designated Huawei and ZTE as national security risks to America’s communications networks – and to our 5G future.
– Ajit Pai, Chairman FCC.

It was also stated that the new development makes it impossible for American businesses to purchase, obtain, maintain, improve, modify, or otherwise support any equipment or services produced or provided by Huawei and ZTE using money from the FCC’s $8.3 billion Universal Service Fund.

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The US is increasing its pressures on the Chinese tech and telecom giant, Huawei. A month prior, new US sanctions cut off its chip supply from TSMC and now, it seems that the US is planning on funding more regions to choose 5G telecom equipment from Huawei’s rivals.

Previously, we had reported on the US funding telecom operators in Brazil to choose Huawei’s competitors in the market to build their 5G infrastructure. As the world moves towards the newer and faster bandwidth, the Chinese company has come under intense scrutiny from the west, despite being a pioneer in 5G networking.

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According to an American official, the United States will also help other countries finance purchases of 5G telecom gear from western alternatives rather than Huawei, who it deems as a security threat due to alleged ties to the Chinese government. The Chinese company has played a major role in developing the 5G infrastructure in many regions, which was possible due to its lower cost equipment.

Huawei had planned on expanding in Europe, the UK, and other regions as well. However, its efforts have been facing increasing obstacles, with the US pressuring regions like the UK against the adoption of 5G networking gear from the company. Although, Huawei has denied these security related allegations from the US.

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(Via)

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TSMC has apparently replaced all of the canceled Huawei orders, according to a new report. The world’s largest contract chipmaker was the primary chip supplier of the Chinese tech giant but had to stop supplying the OEM due to recent US sanctions.

Huawei was a major client of TSMC, and losing this customer also implied losing a big chunk of their revenue. But it seems that TSMC has already replaced all o its canceled Huawei orders. The news from Kung Ming-hsin, the new head of the Taiwanese Economic planning agency, who revealed that the US sanctions weren’t to disrupt relations between Taiwan and China, but only aimed at Huawei.

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Furthermore, he said that “As for TSMC, although their orders no longer have Huawei, they’ve quickly been filled up, as other people really need them.” The chairman of the contract chipmaker also backed this up by stating that there is ample demand from other companies that will quickly fill up the gap. Notably, the company is currently mass producing its latest 5nm chips for its various clients including Apple.

Kung stated that the reason for Huawei being targetted is due to possible ties with China’s government, although there are those that argue otherwise. While Huawei will face issues after the loss of its chip supply, the company is heavily investing in local sources and other non-US supply chains.

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(Via,Source)

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TSMC (Taiwan Semiconductor Manufacturing Company) is currently working towards building a new chip plant in Arizona, US. While the world’s largest contract chipmaker is investing heavily in the region, it is confident that the rest of its customers would fill in any losses in orders or revenue after losing Huawei due to the recent US sanctions.

At the moment, TSMC is still supplying Huawei for its previously placed orders. However, the company is confident that the rest of its major customers like Apple, will step up later on. Furthermore, TSMC is also studying the latest restrictions that are facing by the US and hope that the situation resolves soon. Despite the rocky start with Coronavirus pandemic and US regulations, the company is still going ahead with its planned expansion.

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The semiconductor giant is still planning on spending as high as $16 billion on capacity upgrades and technology in 2020. Notably, the new plant being opened in Arizona despite higher costs will also involve a sizeable investment of $12 billion. The US government has agreed on various incentives to have the foreign chipmaker to create jobs and produce sensitive components domestically.

In other words, the risk involved in having electronics made outside of the US would be lower, which will also make monitoring the technology easier as well. Huawei has always been one of TSMC’s largest customers. The company would stand to lose a noticeable chunk of its revenue and orders due to the restrictions. But, other customers and now, even local orders within the US might help cushion the blow.

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(Via)

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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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(Via)

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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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(Via:1,2)

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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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(Via)

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A new teardown of Huawei devices has revealed that the company had to replace the US made parts with unknown Chinese ones. This replacement was caused after the US ban, where the Chinese tech giant was barred from using products made by America based companies.

According to a new report, a Tokyo teardown specialist by the name of Fomalhaut Techno Solutions opened up Huawei’s flagship Mate 30. The teardown was done to analyze the internals of the smartphone, which revealed various parts from different Chinese firms. For those unaware, the Mate 30 is a part of Huawei’s flagship series and boasts top notch specs but arrives with vanilla Android without Google services due to the ban.

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After the ban, only 1 percent of the internal components value of the Huawei smartphone comprised of US made parts. This number is a sharp decline from the previously reported 11 percent. Thus, it seems that Huawei had to forcibly shift suppliers for various parts. Currently, Huawei handsets ship without Google services and feature its own proprietary HMS (Huawei mobile services) and AppGallery.

At the same time, the Chinese tech giant is also racing to ready its HarmonyOS (HongMengOS in China). Despite the loss of Google support, Huawei is doing quite well in China, even during the coronavirus pandemic. However, the same cannot be said for the overseas market, where Google services are almost synonymous with the Android operating system.

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(Source,Via)

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It seems that Huawei is still unable to get a hold of stable footings. Since 2019, the Chinese tech giant has been facing various complications including a US trade ban and accusations from other governments as well. Now, the company reported on its low revenue growth, which points at the toll the ongoing Coronavirus and US sanctions have had on its operations.

Earlier today (22nd April 2020), the company revealed its revenue for the first quarter of 2020. Huawei saw revenue of 182.2 billion Yuan or roughly 25.7 billion US Dollars. In other words, a meager growth of just 1.4 percent over the same quarter in 2019. Last year the company saw a sizeable growth of 39 percent, which is clearly indicative of the hindrances it has faced in recent times.

According to Huawei, the results were “in line with expectations.” The company had refrained from revealing its bottom line/profits, the revenue in Q1 2020 has reportedly brought in a net profit margin income of just 13.4 billion Yuan (roughly 1.9 billion US dollars). Similarly, Huawei also didn’t reveal the number of handsets it shipped in the three month period either, but one can assume that the figures do not bump the numbers much higher than last year.

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For those unaware, Huawei was blacklisted by the US Commerce Department in early 2019, which banned the company from buying or selling with US based companies. This saw the electronics brand to lose out on Google services for its popular Android smartphones. Recently, the US government under Trump’s administration has been planning on dealing with a decisive blow again by limiting its chip supply from TSMC, the world’s largest contract chipmaker.

In response to this, Huawei has already started moving some of its chip designs to a China based chipmaker named SMIC. Although, SMIC is currently several nodes behind TSMC, which is already readying 5nm processes and is developing and on track with its future 3nm process. The ongoing pandemic is another matter that has greatly affected production and operations. So at the moment, it seems the figures being reflected might carry over to the second quarter as well.

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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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A new report has just surfaced that is related to the business ties between Google and Huawei. The latter is currently banned from using the former’s services on its smartphones, but it seems like the search engine giant is trying to appeal this ruling and try and rebuild business relations.

Back in early 2019, Huawei was dealt a decisive blow by the US Government’s Commerce Department. The Chinese tech giant was placed on the “Entity List” which has banned the company from collaborating or using technology and software from companies based in the US. One such brand was Google and Huawei smartphones since have not arrived with official Google services.

Thus, Huawei smartphones since the Mate 30 series do not arrive with Google services and feature the vanilla Android OS alongside HMS (Huawei Mobile Services). However, it seems like Google is planning on gaining special permission from the White House that will allow it to partner with Huawei again. Interestingly, a Huawei executive had stated a few weeks prior that the company will not work with Google even if the ban was removed. However, this statement alone may not represent the entire company’s wishes as the statement has already been backtracked on.

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This is great news but whether Huawei is still leaning on Google services is still unknown. As it stands right now, the smartphone brand is willing to spend billions in its own HMS and AppGallery service, which is the world’s third largest App Store. The move will also seek to distance a large number of Android users from Google’s ecosystem that will ultimately hurt the company. Hence, it arrives as no surprise if Google actually ends up receiving special permission.

Unfortunately, finer details are still at large as it is unclear if whether Google wishes to rebuild ties or just simply gain additional permissions for its Open Source program. The news first broke by overseas German and Spanish media outlets and also detailed that the decision on the special permission is yet to be decided by the US President, Donald Trump.

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The United States is apparently considering other extreme options to further hamper Huawei operations. Previously, the Trump administration had primarily planned to focus on the Chinese tech giant locally but has since been pressuring other overseas governments as well to ban the smartphone manufacturer.

With ties between the US and China trade being strained, Huawei had been caught in the crossfire in early 2019, when multiple allegations accused the tech brand regarding data security and espionage. Currently, the company is still facing issues in its US operations and in a few European regions as well but has been steadfast in its vision of growth and development.

But now, the US Government is reportedly planning on changing certain regulations that will allow the nation to block shipments of chips to Huawei. The chips in question are from the largest global supplier named TSMC (Taiwan Semiconductor Manufacturing Company). The new restrictions that are being planned are among many others that have been made in the recent meeting between high ranking government officials.

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The primary aim of these meetings is directed at commerce with Chinese OEMs, especially Huawei Technologies. As of right now, the new proposals have been drafted but are yet to be approved. Furthermore, the possibility of these drafts being approved is also questionably, according to close sources. However, being blocked from TSMC which is the largest contract chip supplier will deal a devastating blow to the 2nd most popular smartphone brand.

In simpler terms, the US Government is drafting restrictions that seek to cripple Huawei’s operations in the country by taking a very crucial component of its devices. To make such changes, changes in the Foreign Direct Product rule are being proposed, which will affect some overseas made goods on US technologies. This means, that the local government would make it mandatory for companies like TSMC to apply for a license, allowing the US to control the supply of products to other company’s.

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Earlier this week, U.S officials made bold statements against Huawei saying how the company had the capability to secretly access sensitive and personal information in the systems it maintains across the world. The officials claimed that these so-called “backdoors” allow the company to spy on networks. In fact, a couple of days back, the US Department of Justice filed a formal indictment against Huawei, accusing it of several serious charges like racketeering, conspiracy, and theft.

The officials said they had evidence to show Huawei had backdoor access, but so far, they have failed to show it to the world. And yesterday, Huawei’s cybersecurity chief hit back at those officials daring them to publish this evidence. Huawei’s cybersecurity chief John Suffolk said, “We just say: ‘Don’t hide it, don’t be shy. Publish it, let the world see it’.”

He explained that Huawei had to connect its equipment to the ‘lawful intercept gateway’ required by governments but had no access to it, which are often kept in a special room. These are the backdoors in the network which can tap into calls and data for law enforcement agencies under specific circumstances like that of a court order.

Suffolk said, “We have no access to this equipment, we don’t know what call or information is being intercepted, we don’t know when it is intercepted – all we do is provide one side of the box which is blind to what’s happening on the other side of the box.”

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“I’m not aware of any operator who has said to Huawei: ‘Come and sit in this room and see what’s going on’,” he said.

“If I found out that our staff were involved with such things, then we would take appropriate action on that.”

He also added how the claims about Huawei stealing trade secrets from competitors didn’t make sense because if it was true, its competitors should have been growing at a significant rate. He said that if Huawei had stolen lucrative trade secrets from its competition, then these companies should have been doing at least as well as Huawei.

“The faith of our customers — and you can see this in the results over the past 30 years — gives an indication of what our customers think of those allegations,” Suffolk said.

(Source)

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Huawei could be planning to pre-install up to 70 apps on its upcoming international smartphone models to make up for the lack of Google services. The Chinese smartphone maker is banned from using software from US companies like Google, putting its phones at a disadvantage as compared to competitors like Samsung in the international market.

According to Mobiltelefon.ru, Huawei could pre-load nearly 70 selected apps on its smartphones this year. They are expected to be the most popular apps from the Google Play store or viable alternatives to the apps that are dependent on Google services. The pre-loaded apps will vary according to the region.

Since Huawei smartphones can’t run google services, the company will have to provide viable alternatives to popular apps like YouTube and Google Maps. The report states that Huawei will launch its own video service called as Huawei Video sometime in March this year. This is likely going to coincide with the P40 launch in the same month.

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Huawei’s app store, called the Huawei AppGallery, has around 45,000 apps right now, but it is still nowhere close to the 3 million figure on the Google Play Store. Without access to the Google Play Store, the Chinese smartphone maker will have to ensure that popular apps like Uber, Spotify are available in its own store. Also, it will have to provide viable alternatives to Google’s own apps. In this regard, the company is already in talks with companies like Tomtom (for Google Maps alternative) and Russia’s Yandex.

Huawei reportedly plans to pre-load these apps on at least nine models in the next four months. Mobiltelefon.ru’s source says that Huawei is likely to use this strategy on mid-range models using Kirin 810 and Kirin 710 chipsets. This could include the Huawei Y7p and P40 Lite E models. So Huawei could be using a different strategy for upcoming flagship devices like the Kirin 990 powered Huawei P40 series.

It makes sense why Huawei would want to pre-load a bunch of apps on its international smartphones. Without Google services, the availability of apps would be a big concern on Huawei’s phones. But if most of the popular apps are already on the device, users might be less worried.

However, pre-loading as many as 70 apps doesn’t sound like a good idea, even if they are curated according to the market. Imagine the nightmare sorting out 70 different apps on a brand new smartphone!

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Huawei may have got temporary relief last week after the UK and the EU decided to allow the Chinese telecommunications giant to participate in its 5G deployment, however, the US is reportedly working on an alternative 5G standard that will be compatible with almost any 5G hardware equipment. With this move, the US wants to rely more on software that could potentially reduce the use of Huawei’s 5G equipment.

According to the WSJ report, the White House, Dell, and Microsoft believe that software is the key for 5G development rather than hardware. So, the US is reportedly working with top tech companies like Microsoft, Dell, and AT&T to create a common 5G software standard for telecommunications networks. The idea here is to allow 5G software developers to create and run code on all 5G equipment, irrespective of the hardware manufacturer.

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The report adds that European companies like Nokia and Ericsson could also be a part of this effort given how they have a strong presence in the US.

In response to this report, Andy Purdy, Huawei’s chief U.S. security officer said, “If the U.S. wants 5G hardware and software developed by a U.S. or European company, the government should encourage companies to begin negotiations with Huawei to license our 5G technology,” Mr. Purdy also added that without the company’s intellectual property, “the combined product will be 1-2 years behind the comparable Huawei products in terms of functionality and assurance.”

This news comes right after Huawei announced its plans to establish new manufacturing bases in Europe. This means Huawei can use European made telecommunication equipment for 5G deployment in the region.

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Huawei and ZTE are urging the FCC not to label them as a ‘National Security Risk’. The agency had initially voted to designate the two tech giants as security risks for the US back in November 2019. But the final decision rests with the agency’s Public Safety and Homeland Security Bureau. And both companies are hoping that this risk designation won’t be finalized by the Bureau.

In a 200-page filing by Huawei, the telecommunications giant said that FCC’s efforts to designate it as a national security risk was, “designed to implement a campaign by certain government officials, including members of Congress, to single out Huawei for burdensome and stigmatizing restrictions, put it out of business in the United States, and impugn its reputation here and around the world.” In a similar move, ZTE’s filings asked FCC to assess the company’s efforts in “enhancements in the area of U.S. export controls and economic sanction compliance and security controls in ZTE products”.

Rural carriers in the US are currently barred from using federal subsidies to purchase equipment from Huawei.

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Despite its struggle in the US, the company seems to be doing well internationally. Recently, both the UK and the EU decided to allow Huawei in their 5G deployment, albeit on a limited scale. This goes against the US’ request to put a blanket ban on the Chinese company.

Huawei has long argued that the US ban doesn’t provide any proof to support its claims of “backdoor access” or “national security threat”. It also adds that competitors like Nokia and Ericsson make some of their telecommunications equipment in China, exposing them to similar risks. In fact, back in December 2019, Huawei filed a lawsuit against the US government over FCC’s branding of the company as a ‘National Security Risk’.

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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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On 18th December 2019, Micron Technology Inc stated that it is expecting a recovery after a “cyclical bottom” in the second quarter earlier this year. The primary reasons for its projected recovery in the arriving year are due to the company receiving all requested licenses to supply its products to its biggest client, Huawei.

Micron was facing stagnancy in its growth in the memory market from the beginning of the year. However, the main blow arrived when its largest customer got placed on the Entity List. Huawei, the smartphone manufacturer, was banned from the US Commerce Department in early 2019 which had led many US based companies to cut their business ties with it.

A few of those include Google with its Android OS platform, ARM with its chipset architecture and even Micron Technology for its memory-based chips. Initially, when the US Government imposed the ban on Huawei, many American companies had also been against the move since they had heavily relied on the Chinese tech giant.

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Since Huawei is also one of the leading telecom companies that supply advanced 5G networking infrastructure; a few of the local telecom companies also suffered when the ban was imposed. All of this points to a domino effect that spans multiple corporations if a key player in the market gets affected.

According to the Chief Executive of Micron, Sanjay Mehrotra, the company is expecting business to recover by the third quarter of 2020. The recovery is made possible by the licenses to work with Huawei being granted after the declining performance in Q2 2019. In June, Micron had also stated that it could legally ship some of its products to Huawei even during the ban was enforced. Although whether the company received the license when the US Government began granting them in November is still unknown.

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Following the US-China trade disputes, the US Government has started to ease off on Chinese based companies. The issuing of licenses to firms to perform business partnerships with banned companies like Huawei is one such example. This has allowed American companies to resume their relations with the Chinese tech giant but it might be too late as Huawei is now building its smartphones without US-based parts.

Earlier this year, Huawei was placed on the ‘Entity List.’ After this, the Chinese company was forced to end ties with many of its American based partners after being issued a ban by the US Commerce Department. Initially, the move proved to cripple the company that relied on western companies like Google for Android OS support, ARM for its chipsets and other companies like Intel and Qualcomm as well. However, a new report suggests that the company no longer requires US-based chipsets anymore.

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Huawei’s Mate 30 smartphone is a symbol of this new breed of smartphones which doesn’t feature any US parts. This was proven once the device was taken apart by analysts from UBS and Fomalhaut Techno Solutions which is a Japanese technology lab. The Chinese company has made great strides in distancing themselves and their reliance on the US.

Note: Huawei still uses US-based company’s chipsets but they are manufactured and synthesized in foreign countries.

According to analysts, Huawei made a big statement with the release of the aforementioned flagship smartphone that shipped with no US-made internals. Furthermore, even with Huawei previously announcing its move to do away with American parts, the company is currently in a great position owing to how quickly the shift actually came about.

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Amidst the US-China trade disputes, Huawei is still facing issues with the US Government. The Chinese firm is now aiming to challenge a decision made by the US Federal Communication Commission (FCC) that has banned Huawei from using government funds to buy its telecommunications networking equipment.

Earlier this year, Huawei was placed on the ‘Entity List‘ which disallowed other US-based companies to have trade relations with the company. This move from the US Commerce Department saw Huawei lose Google‘s Android OS support. Since then, the company is still facing problems with the Government after allegations were made over the risk of national security.

According to the FCC, Chinese vendors have largely been excluded from the US market, with many major network carriers using radio equipments from Ericsson, Nokia, and others. Notably, a small number of providers are still using kits from Huawei and ZTE due to it being relatively inexpensive. However, the FCC has voted on a measure that mandates US operators to remove and replace Huawei kit from their networks. The Rural Wireless Association, which represents operators with fewer than 100,000 customers estimates that the replacement of Chinese kit would cost up to 1 billion dollars; and this is just a quarter of its members.

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Huawei plans to file an appeal against this decision. The tech giant has 30 days to file the appeal at the Fifth Circuit Court of Appeals in New Orleans, Louisiana. The company has frequently denied the allegations from the US Government regarding security risks and stated that no evidence of any unlawful conduct has been produced to date. Additionally, US companies wish to partner with such Chinese firms and have argued that the ban also cuts off a valuable source of their revenue.

The US Government is currently issuing a license for such trade and has received 300 applications. So far, about half have been rejected while the other half have been approved, such as Microsoft supplying Windows 10 OS to Huawei laptops.

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A couple of days back, we reported that Huawei’s CEO Richard Yu believed Huawei could have been the world’s largest smartphone marker, surpassing Samsung in 2019, if not for the U.S. ban. But that doesn’t rule out the possibility of Huawei becoming world’s no.1 even with the ban in place.

Huawei’s CEO and founder, Ren Zhengfei said in an interview with CNN that Huawei can become the world’s no.1 smartphone maker even without Google. When asked whether the company had a backup plan, Ren said that Huawei is working on a large scale solution to tackle this situation. He was likely referring to the company’s own HarmonyOS platform that was announced back in August in China.

He also said that he doesn’t know whether Google was ‘definitively ‘denied a license to trade with Huawei. This response comes at a time when some companies have been granted a license to trade with the telecommunications giant. For example, Microsoft recently got a license to export software to Huawei by the U.S. commerce department. Thanks to the trade license, Microsoft could supply Windows 10 to Huawei’s new MateBook D notebooks in China.

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However, the real question in our minds is whether Google will ever receive a license to trade with Huawei. It’s been six months since the U.S. ban came into effect and newly launched Huawei smartphones do not feature Google apps which have become more or less essential for international users. And without Google, Huawei smartphones are basically dead on arrival in the international markets.

But today’s comment reveals that Ren is pretty optimistic about Huawei’s comeback. He added in the interview that it was a matter of waiting for some time until Huawei got back into the international markets. According to Ren, Huawei will make a comeback in the next two years.

“We will have to resort to alternatives. If those alternatives become mature, I think it’ll become less likely to switch back to previous versions,” added Ren at the interview “It is a critical moment for all of us, I hope the US government can consider what’s best for American companies.”

While we still don’t know what Huawei is planning for the international markets without Google, it’s current strategy has been to double down its efforts in China. And thanks to the sales boosts in its home market, the company is doing better than most other smartphone companies on a global scale.

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Huawei announced the new MateBook D series of notebooks alongside the new MatePad Pro and Sound X speakers earlier today in China. The MateBook D came with Windows 10 pre-installed, which might have surprised a lot of readers. So it turns out that the U.S. commerce department has recently approved some licenses to trade with Huawei, including the one requested by Microsoft.

The Redmond giant revealed in a statement to Bloomberg a couple of days back that it has been granted a license to “export mass-market software” to Huawei. While the company didn’t elaborate on the term ‘mass-market’, we now know that it includes Microsoft’s Windows 10 platform.

Prior to this, Huawei pre-installed Deepin Linux on its MateBook models as a replacement to Windows 10. The telecommunications giant wasn’t allowed to use Windows 10 on its MateBook models ever since it was added to the U.S. government’s Entity List. So it was selling cheaper versions of its MateBook laptops running Deepin Linux onboard. Despite the advantages of having a Linux setup, Windows as a platform doesn’t have viable replacements. So getting the supply for Windows 10 back on its notebook models should come as a huge reprieve for the company.

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The U.S. commerce department reportedly got around 290 requests for a license to trade with Huawei last week. Unfortunately, only a handful of these requests are expected to be approved. We have no word on which other companies have been granted licenses apart from Microsoft.

To recall, Microsoft’s President Brad Smith, was vocal about how the U.S. ban on Huawei was both unfair and un-American. Microsoft had reportedly approached the Trump administration to talk about the ban but would often get vague replies like, “Well, if you knew what we knew, you would agree with us”.

Microsoft’s license to trade with Huawei is a step forward. However, the company’s struggle is far from over. There are still companies like Google who are barred from selling its software to the Chinese giant. And Google is very important for Huawei, who is currently the world’s second-largest smartphone manufacturer. In fact, it could have even surpassed Samsung by this year-end to become world number one. But without Google services onboard, Huawei smartphones are essentially Dead on Arrival (DOA) in the international markets.

So it’s extremely important for Huawei to get access to Google services as soon as possible. Unfortunately, given the current situation, we don’t know if that’ll happen anytime in the near future.

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It’s been six months since Huawei was banned by the U.S. government from buying or selling components and services from U.S. companies. However, until now, the full force of the ban has not come into effect, all thanks to the delay of the ban’s enforcement. The second temporary extension, enforced in August, will end on Tuesday, November 19. Now, a report from Politico states that the U.S commerce department is expected to grant another 6-month extension to Huawei.

The extension should allow Huawei to continue to support its existing set of smartphones and devices that use U.S. components. So, existing Huawei devices could be safe for another six months, if this extension is permitted. However, the U.S. government is yet to officially announce anything in this regard and is likely to do it just before the current extension ends.

Even if Huawei gets a reprieve for another 6-months, that still doesn’t change the fact that none of its new devices can use Google Play services. The Mate 30 series will continue to struggle internationally without GAPPs support and we aren’t seeing any solution in this regard.

Despite US Commerce Secretary Wilbur Ross stating that the U.S. government will start granting licenses to U.S companies to trade with Huawei a few weeks back, we are yet to hear about it. With the U.S. – China trade war still going on strong, it remains to be seen if Huawei will get any real reprieve anytime soon.

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(Source, Via)

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Huawei has confirmed that it is working on its own Android-based Operating system that will be its fail-safe against a complete ban from Google’s licensed version of Android OS. Over the past couple of weeks, many potential names have popped up like ‘Ark OS’ and ‘HongMeng OS’. However, it looks like the company’s new operating system could be called ‘Oak OS’, as revealed by Globaltimes today.

Huawei’s OS is said to be called as ‘HongMeng’ OS in China and ‘Oak OS’ internationally. The rumors about the name Ark OS emerged from a few European trademarks from the company. Plus, Huawei’s compiler is called as the Ark compiler which further led people to speculate that the new OS will end up being called as the Ark OS.

If Globaltimes’ source is accurate, then the so-called ‘Oak OS’ from Huawei is currently being tested intensively. The launch is expected sometime around August or September, which is about the same time when Huawei’s 90-day temporary respite from the US trade ban ends.

The US is increasingly blacklisting Chinese companies over the past few months. While it will adversely affect these companies in the short run, many believe that this trade ban could be worse for everyone in the long run. In fact, according to a report from the Financial Times, Google has warned the U.S. government of the potential security challenges arising from this ban on Huawei.

Google reportedly said that if Huawei was to roll out its own Android system based on AOSP, it would be less secure than Google’s version. There could be bugs and issues which could put Huawei phones at risk of being hacked. In fact, FT quotes Google saying, “Our focus is protecting the security of Google users on the millions of existing Huawei handsets in the US and around the world.”

While Google’s points are valid, Huawei Oak OS has the potential to replace Google’s licensed Android on non-Huawei phones as well. With the increasing threat to non-US companies from the Trump government, many are looking for alternatives to US technology. In fact, it wouldn’t be surprising if other Chinese companies joined Huawei to work on Oak OS to ensure they aren’t overly dependent on US companies.

However, before we speculate too much, it’s worth noting that it remains to be seen if the Huawei ban will stand after the 90-day respite. But from how things are developing, it looks like Huawei’s Oak OS would be rolled out, even if the trade ban was lifted.

Clearly, the next few months will be an interesting period for all of the smartphone industry.

What are your thoughts?

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(Source 1, 2, Via )

The post Huawei’s new OS may NOT be called Ark OS, Launch expected in August or Sept. appeared first on Gizmochina.

After the U.S. ban, many of the most important hi-tech companies, components suppliers and chipmakers are keeping a distance from Huawei. Today, it is the turn of the SD Association: a non-profit organization that is known for being involved in the design, development, and manufacturing of products that support SD and micro SD cards. The list of members of the association contains the companies which can produce and sell products with SD cards support the SD standards and use SD and micro SD cards. Until a few weeks ago Huawei was in the list, but now it suddenly disappeared, according to a publication from SumahoInfo.

After noticing the absence of the Chinese giant in the member list, folks at Android Authority reached the SD Association for an explanation. As you could expect, the SD Association is complying with the order from the U.S. Department of Commerce that resulted in the inclusion of Huawei in the Entity List. A list in which you can find all those companies which need the authorization of the U.S. government in order to do business with other U.S. companies. Android Authority even talked to Huawei in order to have feedback about the matter.

A spokesperson from the Chinese company said that micro SD cards will keep working on the actual phones, but it did not release any comment about future devices. The latest Huawei flagships are not equipped with micro SD slots, but they use a new proprietary standard: Nano-Memory, which is a SIM Card-shaped memory card. However, all Huawei’s midrange and entry-level phones still come with a micro SD slot. The decision of the SD Association comes right after ARM (the company creating chipsets design used by Huawei for its Kirin processors) suspended the business with Huawei: the situation of the company could not be worse.

However, it looks like the company is not giving up and it is working with Google and other suppliers to find a solution. Even China confirmed its support to Huawei. Only time will tell.

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The post Huawei de-listed from SD Association: Will it stop making phones with micro SD support? appeared first on Gizmochina.

Just when we thought ZTE was on its way to recovery, things seem to have taken a downturn. The latest report says US lawmakers have passed a bill to reinstate the ban.

News of the ban’s reinstatement has caused ZTE to lose a large chunk of its valuation. This week, its Hong Kong shares dropped by 27%, its lowest in a year; while its Shenzhen listing dropped to the 10% limit consecutively for 4 days.

It is reported that the US lawmakers are using the ZTE saga to stand up to Trump on the trade issue. However, the US president is still expected to meet with Republican congress members to discuss solutions to the ZTE ban. If they do not reach an agreement and the ban is reinstated, it may mean the end of ZTE.

As it has shown, ZTE needs US technology for its products. It doesn’t have an alternative which is why its factories stopped working following the announcement of the ban back in April. The said ban is due to it breaking US laws regarding doing trade with Iran and lying about it.

READ MORE: Huawei vs Samsung Patent Lawsuit Shows The Growing Power of Chinese Courts

If ZTE collapses, its staff strength of about 75,000 workers will be out of work. It will also be a financial loss for the Chinese government which is a shareholder in the company.

(Source)

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