Maria Montero

Huawei Says The Impact Of Trade Restrictions On …

Chinese tech giant Huawei said on Friday that the impact of US trade restrictions on its business will be less than it initially feared, although the restrictions could reduce its smartphone unit’s revenue by around $ 10 billion this year.

A Huawei company logo is seen at Shenzhen International Airport. Image: Reuters

Huawei Technologies’ $ 100 billion business (roughly Rs. 7.20.00 crore) has been hit hard since mid-May after Washington put the world’s second-largest smartphone maker on a so-called List of Entities Threatening to Cut Off Your Access to Essential US Components and Technology

In his first assessment of the impact of the restrictions, Huawei’s founder and CEO Ren Zhengfei said in June that the blacklist would hit the company’s revenue by $ 30 billion, leaving it without top-line growth for 2019.

“It looks like it’s going to be a little less than that. But we have to wait until our results in March,” Eric Xu, Huawei’s vice president, said at a press conference to introduce new artificial intelligence chips at its headquarters in Shenzhen.

Huawei’s consumer business group, which includes the smartphone business and is scrambling to develop its own operating system in preparation for the worst-case scenario of being stripped of essential Android apps from Google, this year is “a lot better “than initially feared, Xu said.

“But a [sales] “A reduction of more than $ 10 billion could occur,” he said. Huawei’s consumer business group reported revenue of CNY 349 billion in 2018.

Driven by patriotic purchases and promotions, Huawei’s smartphone sales in China increased by nearly a third compared to the previous year to a record in the June quarter, helping to offset the drop in shipments in the global market. . Huawei said last month that the consumer business group generated revenue of CNY 221 billion in the first half of 2019.

In a temporary relief for Huawei, Washington said this week that it will extend by 90 days a postponement that allows Huawei to buy from US companies to supply existing customers, while adding more than 40 Huawei units to its economic blacklist.

Xu said the postponement made “no sense” for Huawei, whose employees are “fully prepared” to live and work with the ban.

Huawei, which has been developing its own chips to reduce its reliance on foreign technologies, reiterated on Friday that its chips, including a new AI chipset it launched on Friday called the Ascend 910, are for its own use and is not aimed at becoming A chip seller.

“We are open to discussing partnerships with AI chipset development companies, so there are various types of chips that could be used in Huawei’s products. Therefore, positioning our chipset business independently is not a scenario it’s going to happen, “Xu said.

The Ascend 910 AI processor, a 7-nanometer chipset designed by Huawei’s HiSilicon semiconductor unit based on the ARM architecture for AI model training, has more computing power than any other AI chipset in the world, he said. Xu.

British chip designer ARM earlier this year announced that it would suspend deals with Huawei in compliance with the ban, dealing a blow to Huawei, but Xu said Huawei’s perpetual ownership of the ARMv8 license meant that the Ascend 910 chipset would not. would be affected.

Huawei said it could no longer work with US chip designers like Cadence Design Systems Inc and Synopsys due to business restrictions, but the company has alternatives.