- This happened due to the sanctions imposed by the US
- Google had also retracted support of Huawei smartphones
- The production of Kirin chips would stop on September 15
- Reportedly, Huawei was the world’s highest selling smartphone brand overtaking rivals like Samsung in the first quarter which ended in June
Tech giant Huawei has reported that it is having shortage of SoCs to manufacture smartphones. Hence, the company would also have to halt the production of its flagship kin processors. These chips were used by smartphones from other companies as well. This is a result of the serious sanctions that the US imposed on Huawei and US companies it is in business with.
As reported earlier, Huawei is one of the biggest producers of smartphone and connected technologies in the world. This has been a huge setback for the company, because like most smartphone companies it is dependent on American technologies and companies over technology and the resulting security issues resulted in these sanctions.
Google retracted support of Huawei smartphones
These sanctions on Huawei were imposed last year which had cut off Huawei’s access to US components and technologies. This resulted in companies like Google retracting support of Huawei smartphones. These sanctions were made stricter in May when the White House outright barred vendors worldwide from producing components for Huawei using US technology.
As shared by Richard Yu, President of the Huawei’s consumer unit, the production of Kirin chips would stop on September 15. This is because the chips are made by contractors using US manufacturing technology. He specified that Huawei does not have the capability to manufacture it’s own chips.
Last generation of high end chips
Yu also added that “This is a very big loss for us. Unfortunately, in the second round of U.S. sanctions, our chip producers only accepted orders until May 15. Production will close on September 15.” This year may be the last generation of Huawei Kirin high-end chips. He also added that the company’s sale will probably be lower than last year’s 240 million handsets.
Huawei became the world’s highest selling smartphone brand overtaking rivals like Samsung in the first quarter which ended in June reportedly.