After losing its Android license, Huawei is reportedly losing support from the major chipmakers as well. As reported by Bloomberg, manufacturers including Intel Corp., Qualcomm Inc., and Broadcom Inc. have told their employees that they will not supply their components to Huawei until further notice.
The suspension from the chipmakers came right after Google cut off Android’s license to Huawei, following an executive order from the Trump administration prohibiting US organizations from using telecommunications equipment manufactured by the companies which pose a security risk to the country.
According to another Bloomberg report, Huawei is said to have prepared for this outcome and gathered a massive amount of chips and other important components which will allow the Chinese tech giant to keep running for the coming three months. Apart from stockpiling these chips, Huawei was also designing its own chips to go into mobile phones, laptops, and other networking products.
The Trump administration blacklisted Huawei on Friday, accusing it of aiding Beijing in espionage, and also threatened the tech giant to cut if off from the US software and semiconductors that are essential to manufacturing its products. This blockage of components could also damage the businesses of American chipmakers like Micron Technology Inc, and delay the release of important 5G wireless networks globally.
Ryan Koontz, an analyst with Rosenblatt Securities Inc said, “Huawei is heavily dependent on U.S. semiconductor products and would be seriously crippled without supply of key U.S. components, and the US ban may cause China to delay its 5G network build until the ban is lifted, having an impact on many global component suppliers”.
The license suspension from Google means that Huawei would only have access to the open source version of Android or AOSP i.e Android Open Source Project, which is a limited version of the mobile operating system.