“The supply chain in semiconductors is a long, long supply chain,” said Hui He, head of China semiconductor research for Omdia, a technology research firm. “When Huawei invests in a chip company, they can get priority supply from this chip supplier, especially in a shortage situation.”Huawei is losing its edge in the smartphone business as the Chinese tech giant copes with a global chip shortage as well as U.S. sanctions that cut the company off from 5G technology.
The accelerated pace of Huawei’s chip investments comes as the Shenzhen-based company faces increasing strain from the effects of U.S. restrictions. Reduced access to all chips has pummeled Huawei’s smartphone sales, curbed its market share in 5G telecom gear and crippled its chip design subsidiary, HiSilicon Technologies Co.
Huawei Chief Executive Ren Zhengfei has acknowledged the setbacks resulting from American actions, telling employees in August that to press ahead, the company needs more “theoretical breakthroughs, especially in domains like compound semiconductors and materials science.” “Currently, Japan and the U.S. are the leaders in these domains. We must leverage our global platforms to enable our success,” he said.
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China will thanks US for pushing China into high tech playground.
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