Huawei’s chip making division has long been prepared for the US sanction

Huawei’s semiconductor division HiSilicon said after the ban on Huawei’s telecom equipment that it has long been prepared for the kind of action from the US.

Trump inks executive order to ban Huawei’s telecom kit

According to Reuters, HiSilicon chip division shrugged off concerns about disruptions to supply, saying it has long been preparing for this kind of “Extreme Scenario”.

Huawei will aim to be technologically “self-reliant” going forward, He Tingbo said in a letter to staff. But that is easier said than done, industry experts say.

“I would be surprised if HiSilicon can make it without any U.S. suppliers,” said Linda Sui, a Strategy Analytics analyst.

A China-based source at a U.S. tech company previously told Reuters that none of Huawei’s U.S. suppliers “can be replaced by Chinese ones, not within a few years, at least”.

The US president on Wednesday officially signed a trade blacklist on Thursday, adding restrictions that’ll make the company very difficult to do business with American firms, which labeled as an action against national security.

The US believes that telecom equipment made by Huawei Technologies could be used to spy on the country and is under control by the Chinese state government. On the other hand, Huawei has always denied these allegations and said their equipment has no such threats.