Huawei to halt production of flagship chipsets in September as pressure against company mounts

WION Web Team
New Delhi, India Published: Aug 10, 2020, 11:36 AM(IST)

File Photo: Huawei logo Photograph:( Reuters )

Story highlights

The US has upped the ante against the company, demanding the extradition of the company’s chief financial officer - Meng Wanzhou from Canada on charges of bank fraud

Huawei Technologies Co, which has been facing boycott globally for its alleged links with the Chinese government and the world growing wary of products coming out of China, might soon be unable to keep making chipsets in the face of pressure.

US at the forefront

US had been at the forefront of the anti-Huawei sentiment in terms of 5G connectivity, but in the aftermath of the COVID-19 pandemic and anti-China sentiment running strong, countries like the UK have also banned Huawei’s role in 5G networks and will work to phase out usage of company components over the next decade.

Due to this backlash, Huawei will halt the production of its flagship Kirin chipsets starting September 2020, first reported by magazine Caixin.

Also read: Amid tensions over Huawei, Chinese court sentences Canadian national to death

With all eyes on China, Huawei’s suppliers are unable to keep up the production of chipsets, which is an important component of every smartphone. Richard Yu, the CEO of Huawei’s Consumer Business Unit revealed this news during the launch of the company’s new mobile called Mate 40.

US is pressurising governments across the world to boycott Huawei, claiming the company is handing out user data to the Chinese government, a claim which has staunchly denied by the company.

A trajectory of boycott

Similarly, the Chinese app TikTok has been placed under a lot of scrutiny. India became the first country to officially ban Chinese apps including TikTok and CamScanner after a border skirmish. The trend has been picked up by countries around the globe, who feel China needs to sidelined for hiding information about COVID-19 in its early stages, which could have prevented its transmission across the globe.

The US has upped the ante against the company, demanding the extradition of the company’s chief financial officer - Meng Wanzhou from Canada on charges of bank fraud.

Also read: China's Huawei overtakes Samsung as top smartphone seller

In May 2020, US had issued orders to its software and manufacturing equipment suppliers to stop all business with the company, unless a license was first obtained.

"From September 15 onward, our flagship Kirin processors cannot be produced… Our AI-powered chips also cannot be processed. This is a huge loss for us”, the company chief announced, according to Caixin.

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