Qualcomm, Intel And Other Chipmakers Stopped Supplying To Huawei

According to Bloomberg, Qualcomm, Intel, Xilinx, and Broadcom has decided to stop working with the Chinese tech giant Huawei. These are the parties that provide important parts of Huawei's production lines. Nikkei tipsters claimed that Infineon Technologies, a chip manufacturer from Germany as well as US memory chip makers Western Digital and Micron Technology also suspended certain shipments to Huawei.

The trade ban is currently being strictly enforced by US companies. And this seriously affects Huawei's business. Both Huawei’s PC and MateBook X Pro use Intel chips. Meanwhile, Xilinx and Broadcom provide chips for Huawei’s networking business. Although Huawei produces processors for many of its phones, it still needs Qualcomm chips to complete its products.

Chip manufacturing companies declined to comment on this incident.

Huawei has already anticipated this outcome as the company has stockpiled components and designed its own chips. The company believes that the US-China trade war will soon lead to catastrophe and heavily affect the company. However, this contingency plan can only help the company maintain its supply for a few months. If the US continues to hold a trade ban or this trade war continues much longer, Huawei must take new measures or it will lose important parts of its business.

The Chinese tech giant has been developing other internal alternatives for Windows and Android. It can be extremely necessary and important, especially at the present time. Microsoft has yet to speak out whether it will provide Windows operating systems for Huawei’s laptops. However, Microsoft also seems to respect the US government's order.

For China, Huawei is one of its shining beacons and has brought many benefits to the country. The Chinese government will not want this company to have a decline on its important parts as it can have a profound impact on the country's economy.