Huawei has enough reserves for two years of American chips
Huawei has enough reserves for two years of American chips

A new report published in the Nikkei Asian Review said that the Chinese company Huawei has kept sufficient reserves for two years from the main American chips to protect its operations against Washington's actions. The effect of strict measures.

Huawei's memory business focuses on Xilinx servers and programmable chips made with Intel central processors. These are the main components of the company's base station and emerging cloud activities and have one and a half or two-year inventory.

According to sources, Washington State of America banned the manufacture of chips developed by Huawei after the last U.S. campaign on May 15. Therefore, there are no other alternatives to Huawei, and memory-based chips ultimately affect the company's competitiveness.

Soon after the daughter of the CFO and founder of the company was arrested on the Canadian border, the company began purchasing the chips in late 2018.

Huawei announced last week that it spent $ 23.45 billion on memory chips, components and materials in 2019, an increase of 73% over the previous year, and tightened export control rules in Washington to prevent this from occurring any delivery other than others. Three days after Shang, Huawei first publicly voiced these efforts. The United States produces Huawei chips.

Nikkei Asian Review first reported Huawei storage activity last May when the Chinese company was first listed on the business blacklist. Reducing the use of American technology.

Although Huawei did not announce the goal of purchasing the chips, the sources said: The company is particularly interested in building a stock of programmable chips, which is especially important for Huawei stations and major cinemas. Communication equipment because it provides communication and architecture for a variety of applications. Base station.

"It is currently difficult to replace the programmable Xilinx chipsets," the report said. "Huawei's HiSilicon division cannot develop chips that can compete with Xilinx chips."

Xilinx chips are also associated with national security. Because of its use in aerospace and defense technologies such as the hunt for American F-35 fighters, satellites, and NASA, it has caused Trump to press Taiwan's semiconductor manufacturer (Xilinx) to build production in the United States. Factory.

Huawei is also trying to buy server processors from Intel and its competitors (AMD), which together control nearly 98% of the global server processor market, and Huawei cannot do without server processors to grow its growing cloud business.

As of May last year, Huawei could not purchase chips from American companies without special permission, but it could still store American chips through other available channels, such as distributors and distributors from American companies, because the company is ready for chips to pay. Prices are usually much higher. .

Since last year, the Chinese company has also created a stock of RAM (DRAM), (NAND) Samsung, (SK Hynix), (Micron) and (Kioxia). Huawei tried to buy Samsung and (SK Hynix) warranty. Stable supply of memory chips.

Providing enough chips is essential for Huawei. In order to launch products on time, the company launched Kunpeng chips as a replacement for Intel and AMD in early 2019, as these chips will replace chips (Xilinx). However, due to the latest U.S. restrictions, Huawei cannot produce these chips. .

Save 80.0% on select products from RUWQ with promo code 80YVSNZJ, through 10/29 while supplies last.

HP 2023 15'' HD IPS Laptop, Windows 11, Intel Pentium 4-Core Processor Up to 2.70GHz, 8GB RAM, 128GB SSD, HDMI, Super-Fast 6th Gen WiFi, Dale Red (Renewed)
Previous Post Next Post