Huawei’s chip storage can support the company run longer: Huawei

Eric Xu, Huawei’s Rotating Chairman at Huawei’s 18th Global Analyst Summit in Shenzhen been asked about Huawei’s current challenges with global supply chain partners and how much chip inventory does it have left.

In response to this, Eric said, first of all, Huawei’s current chip inventory can make the company live longer than we would expect. Additionally, you should forget that Huawei is a large semiconductor procurement firm, and China is a huge chip market.

There are many companies in China that are worried that will end up being like Huawei and too much dependence on foreign technology will make them suffer.

Eric believes that some companies will definitely invest and find ways to meet the needs of big firms such as Huawei and other domestic players and solve their chip problems. Surely, this day will arrive, he stressed.

In May 2019, Huawei was added to the U.S. Entity List, which prohibits the company from purchasing U.S. goods and technologies such as chipset and software services from Google. Later in 2020, the U.S.government further strengthen the ban on Huawei and cut its chip supplies even further.

Xu during his speech mentioned that U.S. restrictions have undermined the global trust system in the global semiconductor industry caused panic stocking by the global firms and eventually led to global semiconductor shortage as well as supply chain instability. Therefore, rebuilding trust in the global semiconductor industry is required.

“Rebuilding trust and restoring collaboration across the global semiconductor supply chain is crucial to bringing the industry back on track,” stressed Eric Xu.

Eric further added that Huawei has been on the U.S. Entity List for a long time now and the company’s new strategy revolves around Huawei developed under these restrictions.

(Via – ithome)