Despite its placement on the Entity List for half a year, Huawei enjoyed a prosperous 2019 with phone shipments rising approximately 20% from over 200 million to more than 240 million. Huawei topped Apple for second place among the world’s top smartphone manufacturers. So the U.S. went to plan “B” and exactly one year after it announced Huawei’s placement on the Entity List, the Trump administration announced a change to its export rules. A U.S. license would be needed to allow a foundry to ship Huawei designed chips to the company if they were produced using U.S. technology. This change takes effect in the middle of next month which has given Huawei some time to stock up on its cutting-edge 5nm chips for the upcoming Mate 40 line. The Mate series is usually Huawei’s most technologically advanced every year. But recently the world’s top independent foundry, TSMC, stopped taking orders from Huawei; the latter has been TSMC’s second-largest customer after Apple.
Interviewed on Fox Business News, Ross said the new rule “makes it clear that any use of American software or American fabrication equipment to produce things through Huawei is banned and requires a license. So it’s really a question of closing loopholes to prevent a bad actor from access to U.S. technology.” The Commerce Department today also added 38 Huawei affiliates in 21 countries to the Entity List which blocks those firms from receiving any U.S. technology without a license.
It seems that the harder the U.S. squeezes Huawei, the more successful the company becomes. Finally achieving a long time goal, Huawei was the top smartphone manufacturer in the world during April and May according to Counterpoint Research. Whether it will be able to hold that slim lead over Samsung remains to be seen considering the latest restrictions. Besides topping the smartphone charts, Huawei is also the global leader in supplying telecom firms with networking equipment.
Source: Phonearena
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