Huawei Kirin chip production to exit the U.S.

The large tech company Huawei is facing an interesting hurdle. With mounting pressure and U.S. sanction, they will no longer be able to make its Kirin chip by the end of the year. This is the latest in the effects of what Huawei has been going through politically.

Mobile Giant

Huawei is one of the biggest producers of smartphones and network equipment in the world. They came bursting on the scene a few years ago. There is a solid partnership with Leica to produce a smartphone with an amazing camera. They have recently found themselves with tons of unwanted attention from the U.S. Government.  On September 15th, their Kirin chip producers will need to shut down.

Orders can only be made until May 15th for the Kirin chip. Production needs to cease because they are made by contractors on the U.S. according to Richard Yu, President of the Consumer Unit. This means that the P40 Pro could be the last smartphone from Huawei to be produced with their high-end chipset.

“This is a very big loss for us,” Yu said Friday at an industry conference, China Info 100, according to a video recording of his comments posted on multiple websites.

“Unfortunately, in the second round of U.S. sanctions, our chip producers only accepted orders until May 15. Production will close on Sept. 15,” Yu said. “This year may be the last generation of Huawei Kirin high-end chips.”

The Sanctions

Huawei is a tech giant. They employ over 180,000 people and carry a research and development budget of $15 billion a year. It does, however, rely on contractors to manufacture its products.  These sanctions cut off its access to components from the U.S. market. They also cut off access to the Google Market place. It seems as if Huawei has been backed into a corner.

By no means am I here to give a political opinion on the subject. Huawei has changed the game with smartphones by setting a precedence for what a mobile camera can achieve. It will be intriguing to see how they pivot from these latest sanctions to keep up with their global demand for smartphones. 

Source: The Associated Press