Several key suppliers are reportedly cutting off Huawei after the Trump administration added the Chinese telecom equipment and smartphone giant to a trade blacklist last week. According to Bloomberg, semiconductor companies Intel, Qualcomm, Xilinx and Broadcom will no longer supply Huawei until further notice. This follows another report earlier today that Google has suspended some trade with Huawei, leaving it with access only to the open-source version of Android.
In addition to impacting Huawei’s business, the blacklisting has ramifications for telecom providers who are getting ready to launch 5G networks. In China, the three big telecoms (China Mobile, China Unicom and China Telecom), which are all heavily reliant on Huawei, may be forced to delay 5G rollout. Meanwhile, U.S. carriers, especially smaller ones, may have to spend millions of dollars replacing Huawei equipment they have already installed or looking for new suppliers.
In tweet last week from the account Huawei Facts, the company called the blacklist a “lose-lose” situation. In a more recent tweet, it said “Oops! The U.S. is already coming to its senses over a ban on #Huawei, with a government official admitting that it cannot distance itself from the tech giant as easily as it might like. #HuaweiFacts” in response to a report that the administration might grant Huawei a temporary license to prevent service interruptions.
Oops! The U.S. is already coming to its senses over a ban on #Huawei, with a government official admitting that it cannot distance itself from the tech giant as easily as it might like. #HuaweiFacts https://t.co/qeiencw8ny
— Huawei Facts (@HuaweiFacts) May 19, 2019
Meanwhile, Google’s ban, first reported by Reuters, would give Huawei, the second-largest smartphone brand in the world after Samsung, access only to open-source version of Android, leaving it with a significant disadvantage to other handset makers.
According to Bloomberg, Huawei stockpiled three months worth of chips in anticipation of action by the U.S. government, which it has been at odds with since a 2012 Congressional report deemed it a potential threat to national security (accusations the company has repeatedly denied).
A Xilinx spokesperson told TechCrunch “We are aware of the Denial Order issued by the U.S. Department of Commerce with respect to Huawei, and we are cooperating. We have no additional information to share at this time.” Huawei spokesperson said the company has no comment. TechCrunch has also contacted Broadcom, Qualcomm and Intel for comment.
Update: In a statement, a Huawei spokeperson said “Huawei has made substantial contributions to the development and growth of Android around the world. As one of Android’s key global partners, we have worked closely with their open-source platform to develop an ecosystem that has benefitted both users and the industry. Huawei will continue to provide security updates and after-sales services to all existing Huawei and Honor smartphone and tablet products, covering those that have been sold and that are still in stock globally. We will continue to build a safe and sustainable software ecosystem, in order to provide the best experience for all users globally.”