Chinese accuse Washington of using national security to stop a rival to U.S. tech industries.
Chinese officials accuse Washington of using national security as an excuse to stop a rival to U.S. tech industries.
Huawei, founded in 1987 by a former army engineer, denies accusations it might facilitate Chinese spying. Chinese officials accuse Washington of using national security as an excuse to stop a rival to U.S. tech industries.
"Unfortunately, in the second round of U.S. sanctions, our processor manufacturers only accepted orders until May 15. Production will close on Sept. 15," Yu said. "This season might be the last creation of Huawei Kirin high-end chips."
BEIJING -- Chinese technology giant Huawei is operating out of processor chips to create smartphones because of U.S. sanctions and will be forced to stop production of its most advanced processors, a company executive says, in an indication of growing damage to Huawei's business from American pressure.
Production of Kirin chips made by Huawei's own engineers will discontinue Sept. 15 since they are created by contractors that need U.S. manufacturing technologies, said Richard Yu, president of the organization's consumer unit. He said Huawei lacks the ability to make its own chips.
Washington cut off Huawei's access to U.S. components and technology including Google's music and other smartphone services last year. These penalties were tightened in May if the White House barred sellers worldwide from using U.S. technology to make components for Huawei.
In other U.S.-Chinese clashes, TikTok's proprietor, ByteDance Ltd., is under White House pressure to market the movie app. That is due to worries its access to private information about millions of American users may be a safety threat.
"This really is a really major loss for us," Yu said Friday at a business conference, China Info 100, according to a video recording of his remarks posted on multiple websites.
Earlier, Huawei announced its international sales rose 13.1% over a year ago to 454 billion yuan ($65 billion) in the first half of 2020. Yu said that was a result of strong sales of luxury products but gave no information.
On Thursday, President Donald Trump declared a ban on unspecified transactions with TikTok along with the Chinese proprietor of WeChat, a popular messaging service.
Huawei is a leader among emerging Chinese rivals in telecoms, electric automobiles, renewable energy, and other areas where the ruling Communist Party hopes China can develop into a worldwide leader.
Huawei Technologies Ltd., among the biggest manufacturers of smartphones and community equipment, is in the middle of U.S.-Chinese tension over technology and safety. The feud has spread to include the most favorite Chinese-owned video app TikTok and China-based messaging service WeChat.
Huawei became the planet's top-selling smartphone manufacturer in the 3 months ending in June, departure rival Samsung for the first time because of strong demand in China, according to Canalys. Sales abroad fell 27% from a year earlier.
Huawei has 180,000 employees and one of the world's biggest research and development budgets at more than $15 billion annually. But, like most international tech manufacturers, it depends on contractors to manufacture its own products.
Yu said that year's smartphone sales probably will be lower compared to 2019's amount of 240 million handsets but gave no information. The company did not immediately respond to queries Saturday.
More widely, Huawei's smartphone production has «no chips without a supply”, Yu said.