Dark times are really coming for Huawei
After chipmaker TSMC cut off shipments to Huawei due to new sanctions, the Chinese tech giant has relied on various Chinese manufacturers and even launched several joint projects with them. Now it became known that Huawei has betrayed its own: semiconductor manufacturers in China have stopped supplying Huawei components.
Recent US sanctions have strengthened previously imposed restrictions, like Huawei and its suppliers now have to obtain a special license if they use American components or technology to produce the required components. On September 15, new sanctions came into effect.
According to a DigiTimes report, Huawei was actively stockpiling chips until September 15, but any additional shipments are now on hold. Huawei's troubles have been exacerbated by the fact that Chinese chipmakers have abruptly suspended shipments of Huawei equipment without any announcement. We are also talking about the freezing of all projects on which Chinese companies have worked together with Huawei.
DigiTimes writes that the move by Chinese suppliers was prompted by fear of possible US anger. Industry sources familiar with the situation said local chipmakers have suspended shipments as the US could also pressure them for violating trade restrictions. If this is true, then for Huawei, dark times are indeed coming, which could severely shake the company's position once the accumulated inventory of components runs out.