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Huawei may run out of processors

Huawei could suffer another blow inside the United States trade war, because the Government studies additional restrictions for prevent you from using TSMC processors, which right now the most pointer chip provider.

While Huawei uses its own HiSilicon subsidiary chips, It depends on various technology partners, linked to the United States. On the one hand, Huawei Kirin processors use the design of ARM (of British origin) as a base, and its final manufacturing is commissioned by a third company.

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That is, Huawei improves and optimizes its processors, but it is a "fabless" company (such as AMD, Qualcomm, Nvidia or Apple) that must outsource the manufacturing to a partner that has "foundries", the sophisticated factories where the chips are manufactured .

The goal of the United States will be that Huawei loses TSMC as a supplier, which has been manufactured from Kirin 950 to Kirin 990, and is expected to be the priority alternative for the next generation.

TSMC stands for Taiwan Semiconductor Manufacturing Company, that is, it is based in Taiwn. Nevertheless, part of the equipment to create the processors comes from the United States, and that is where the veto will be exercised, demanding a license from TSMC to sell its products to Huawei.

Although this requirement of EE. UU. about a foreign company is debatable, it is most likely that TSMC accepted it, because refusing could affect its other customers, and will probably receive pressure for geopolitical reasons.

The island of Taiwn (officially the Republic of China) is the region where the previous government remained after the establishment of the People's Republic of China in 1949. China has never tried to take control of Taiwn by force, but aspires to annex it somewhere moment, so EE. UU. It is an important partner for the independence of the island.

If Huawei could not manufacture its processors with TSMC should find another provider, which will be a problem. Companies like Intel, Samsung Foundry or GlobalFoundries will be able to offer their services, but you most likely have to choose SMIC, of ??Chinese origin.

Whatever the alternative, the consumers will be the hardest hit by the commercial war that the Trump administration has declared to China, because it limits its options. Especially because the US UU. accuses Huawei of spying for the Chinese government, but for the moment it has not shown evidence of it.

Neither the United States nor TSMC wanted to comment on this possible veto on the processors, and the leaks talk about a decision has not yet been made, but that the US government works with that possibility.

Huawei recently announced a new alternative store to Google Play to limit the impact of the lock on Android, and having to change the hardware of their smartphones will be an additional setback.

For now, the Future of Huawei Kirin processors raises doubts, although this should not affect models such as the Huawei P40, which at the hardware level is to imagine that they are already finished.

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What do you think of this new veto to Huawei? Do you think TSMC will have to stop manufacturing its chips?

Go: Reuters