The USA allows the chips to be sold to Huawei
The USA allows the chips to be sold to Huawei

Huawei's blockade could dilute its mobile devices and chip business and give the company a lifeline.

The British Financial Times reported that these companies could supply Chinese companies with components unrelated to 5G networks.

In the United States, an increasing number of chip manufacturers can supply components to Huawei as long as they are not used in 5G services.

Analysts believe this may mean that the harsh US sanctions imposed on large Chinese tech companies this year may not pose a threat to all of their businesses, as previously thought.

While sanctions remain a major challenge for 5G business, the company's large smartphone division could recover.

"Someone told us that the chips used in mobile devices are not a problem," said an executive in Asia Semiconductor.

Samsung Display (Samsung Display) is licensed to provide an OLED display to Huawei, while Sony and (OmniVision) received a green light to provide an image sensor (CMOS) for Huawei.

Sony's photography division has warned that sales will drop, also because shipments to Huawei should stop.

Foreigners believe that the license can be obtained from Qualcomm and MediaTek, which will solve the problem of Huawei chips shortage.

The company had previously been banned from purchasing chips from MediaTek in Taiwan due to the use of US chip manufacturing technology.

There is no information available that would allow TSMC to resume charging so Huawei can continue to use its Kirin chips.

It is not known if it will be able to access US operating systems and software, as this could have a major impact on Huawei and Honor devices, which could restore access to Google's mobile services.

Huawei's mobile business accounts for more than half of its revenue. If the chip supply chain is restored, operations can resume.

While the United States continues to view this as a threat to national security, management of network equipment must rely on inventory gathered before the embargo.

Industry experts have expressed doubts about whether Qualcomm and MediaTech will be approved, and warned that they have high hopes in this issue, noting that the current US administration suffers from instability in policymaking.

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