US Sanctions to Halt Huawei’s Kirin Chip Output as Supplies Run Dry, Exec Says
Li Na
DATE:  Aug 10 2020
/ SOURCE:  Yicai
US Sanctions to Halt Huawei’s Kirin Chip Output as Supplies Run Dry, Exec Says US Sanctions to Halt Huawei’s Kirin Chip Output as Supplies Run Dry, Exec Says

(Yicai Global) Aug. 10 -- Production of the Kirin microprocessors designed by Huawei Technologies’ in-house engineers will stop on Sept. 15 because of US restrictions, the president of the firm’s consumer unit said at an industry forum on Aug. 7.

“Things are very difficult,” Richard Yu told Yicai Global. “We’ll be unable to produce chips in the second round of sanctions.

“We’re in a running out of stock phase,” he said. “Huawei’s smartphone production will have no chips and no supply.” The firm’s upcoming Mate 40 phone, which is set for release next month, may be the last flagship phone equipped with Kirin, Yu said.

Released last September, the flagship chip is made by Taiwan Semiconductor Manufacturing’s 5-nanometer process and is expected to complete all orders before Sept. 14. Taiwan Semiconductor will no longer be its original equipment manufacturer after Sept. 15, and Huawei cannot find an alternative maker.

The US shut off Huawei’s access to American components and technology last year, then further turned the screws in May, barring suppliers around the globe from including US technology in components made for the Shenzhen-based telecoms and handset giant.

Square One

“The fruits of 10 years of effort brought Huawei’s technology from a seriously backward state to a somewhat backward one,” Yu said. “But then we advanced again to take the lead in a very difficult progression.” The ending of Kirin chip production is “a very big loss for our company.”

Yu called on players in China's semiconductor industry chain to achieve comprehensive technological breakthroughs.

Huawei is also building a new operating system ecosystem. Its Harmony OS works on various devices, Yu said, adding that Huawei's watches and smart displays will be equipped with the OS. It will connect distributed devices and a large number of apps to build an ecosystem.

Huawei's previous Huawei Mobile Service core system has more than 81,000 apps, and the latest version of HMS Core 5.0 was officially released on June 29 for global developers, public data show.

The US banned Huawei from using US wafers and mobile services last year, and the company was only able to solve the chip and ecological problems through its own devices. It developed HMS to break the blockade. “Its ecological experience is now improving every day, every week, and every month,” Yu said.

Editors: Tang Shihua, Ben Armour

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Keywords:   Kirin Chip,Mobile Phone,US Sanction,Business Analysis,Huawei