Latest in Gear

Image credit: FRED DUFOUR/AFP/Getty Images

Intel, Qualcomm and other chipmakers cut off supplies to Huawei

This could have a devastating effect on Huawei's business.
5312 Shares
Share
Tweet
Share
Save

Sponsored Links

Huawei has more to worry about beyond Google's decision to suspend Android support. Bloomberg sources said that American chipmakers Intel, Qualcomm, Broadcom and Xilinx had told staff they wouldn't supply Huawei with parts "till further notice," leaving the Chinese tech giant without potentially vital components. Nikkei tipsters also claimed that Germany's Infineon had cut off "certain shipments" to Huawei out of caution, although a spokesperson since said that most of its products wouldn't be subject to the US blacklisting that had prompted companies to back away.

The effective trade ban could seriously damage Huawei's ability to do business. The company depends on Intel chips both for its servers as well as PCs like the MateBook X Pro. Broadcom and Xilinx supply chips for its networking business. And while Huawei makes its own processors for many of its phones, it may still need Qualcomm for some chips.

The chip companies have so far declined to comment.

Huawei has reportedly been preparing for a possibility like this by stockpiling components and designing its own chips. It's betting that an end to the US-China trade war will come soon enough to avert catastrophe. However, it might only have enough supply for a few months. If the trade war doesn't end soon or doesn't lead to a thaw in US relations, Huawei may be forced to either find alternatives or lose important parts of its business. China won't like that -- Huawei is one of the country's shining beacons, and a decline on its part could have far-reaching implications for the Chinese economy.


Video
Presenter: Dana Wollman
Script: Dana Wollman
Script Editor: Nathan Ingraham
Editor: Chris Schodt
Producer & Camera: Michael Morris

All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you buy something through one of these links, we may earn an affiliate commission.
Comment
Comments
Share
5312 Shares
Share
Tweet
Share
Save

Popular on Engadget

IKEA's AR furniture app now lets you preview an entire room

IKEA's AR furniture app now lets you preview an entire room

View
Google may have taken first step towards quantum computing 'supremacy'

Google may have taken first step towards quantum computing 'supremacy'

View
Nintendo seriously needs to fix multi-Switch game sharing

Nintendo seriously needs to fix multi-Switch game sharing

View
Readers relive their experiences with the original NES

Readers relive their experiences with the original NES

View
On Nintendo's 130th birthday, here are five books about its history

On Nintendo's 130th birthday, here are five books about its history

View

From around the web

Page 1Page 1ear iconeye iconFill 23text filevr