Huawei stocked up on telecom chips. They can last for years

Huawei faces several problems when it comes to how the company operates. Due to new sanctions imposed by the United States, the company is now forced to stop developing its flagship Kirin chipsets.

Huawei’s backup plan

However, it seems the impact of the new restrictions introduced by the US government won’t be as bad as the smartphone sales themselves. Of course, only compared to the company’s main business, which is telecommunications equipment.

According to the latest report coming from Korea, Huawei has secured enough chipsets used in a telecom station that can last for years. The company reportedly started stocking a large quantity of semiconductors for internal operations from last year.

Since the lifecycle of chipsets used in telecom stations is much longer than that of chipsets used in smartphones, unlike the mobile phone business, they won’t have issues using the latest chipset.

The chipsets used in telecom stations focus more on stability and reliability.

Last year, the company announced the Tiangang chipset for 5G telecom stations, which supports a frequency of 3.5 GHz and 2.6 GHz. TSMC manufactured the chipset using a 7 nm process back in 2018, and has been the company’s main supplier since last year.

The end of Kirin chipsets?

Huawei and its 70 affiliated companies were added to the United States’ entity list. This requires a special license to do business.

Therefore, the contract chip manufacturer Huawei TSMC was banned from accepting new orders from the Chinese company, and from September 15 it will completely stop producing HiSilicon chips.

In line with this development, Huawei’s executive director confirmed that the Kirin 9000 will be the company’s last flagship chipset. It will also power the upcoming Mate 40 smartphone series.

However, it’s likely that mid-range chipsets will continue to be produced, since SMIC currently manufactures them in China.

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