Breaking: Huawei gets U.S. license to purchase chipset for automobile

This is surely a piece of big news for Huawei, the company has gained U.S. approval to purchase chipset for the automobile business. This would help the Chinese tech giant to further approach the field of smart car solutions and the company would really take benefit of this opportunity.

According to a report from Reuters, the U.S. has granted licenses authorizing suppliers to sell chipset to Huawei for such vehicle components as video screens and sensors. A person related to the matter revealed that automobile chips require less attention for license approval.

Currently, Huawei has denied replying on this matter but a spokesperson mentioned that the U.S. has gone too great to slow down the growth of its telecom business.

The spokesperson also said that Huawei is aiming to become and lead in the field of smart vehicles component provider and its aim is to help other car OEM (manufacturers ) build better vehicles.

U.S entity List:

In May 2019, Huawei was placed under the U.S. Entity List, which prohibits the company from purchasing the U.S.-made technologies including chipset for smartphones and for other business that requires such components to build new products.

Moreover, the company has to break its partnership with Google and stopped signing new phones with Google Mobile Services also known as GMS. Thereafter, the Chinese tech maker has to bring its own set of mobile services called  – Huawei Mobile Services (HMS) and a new operating system – HarmonyOS.

Automobile Business:

Huawei has already increased its footsteps into the smart car business and working with major carmakers and industry partners. As mentioned above, the company is unraveling in the field of smart car solutions and is not interested in purchasing shares in any car maker.

Richard Barnett, chief marketing officer at a global electronics consultancy called Supply Frame, said Huawei is in the “early innings” of trying to invest in the $5 trillion automotive markets that have large potential growth both inside and outside of China.

“Cars and trucks are now computers on wheels,” said Barnett, “That convergence is what’s driving Huawei’s strategic focus to be a bigger player in that area.”

Major partnerships:

On August 24, Huawei announced cooperation with two Chinese companies – Changan Automobile and CATL. These three established a car brand – Avita and launched the first model – Avita E11.

The Avita E11 is equipped with solutions and hardware provided by the world’s leading intelligent electric networked vehicle architecture – CHN (Changan C, Huawei H, CATL N)

Under the Avita brand, all of these three partners will launch 5 models in the coming five years. These models will surely establish a good impression among auto consumers and will help the company to lead further into this industry.