Chinese telecommunications giant Huawei said production of its most advanced smartphone chips would cease in September due to US sanctions, resulting in a “massive loss”
Huawei, the world’s largest producer of telecommunications networking equipment has become a key issue in the geopolitical standoff between Beijing and Washington, claiming that the company poses a significant threat to cybersecurity.
Yu Chengdong, CEO of Huawei, told a tech sector forum on Friday that production of the company’s Kirin 9000 high-end chipset would stop from September 15 due to US sanctions.
Washington block access to US components and technology by Huawei including last year’s Google music and other smartphone services.
The company doesn’t even have the ability to produce the chips that were used on its high-end smartphones.
“Huawei’s mobile phones have no supply of chips, making our shipment volume a little less than 240 million units this year (shipped last year),” Yu said. “This is a big loss for us.”
Australia and Japan have also taken measures to limit or restrict the participation of the Chinese company in their 5 G deployments, while European telecommunications operators including Norway’s Telenor and Sweden’s Telia have passed over Huawei as supplier.