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Between that and a stock of chips, Huawei could theoretically keep its telecommunications hardware business running with relatively little disruption. While its chips from 2021 may lag behind their international rivals, they could be good enough for the domestic market until Huawei can improve its designs further.
Huawei and IC R&D center both declined to comment FT, with the research firm describing the issue as “rather sensitive”.
Huawei may not have to worry about its long-term future if the reports are correct. As you may have noticed, however, there is no mention of phones in this plan. Mobile devices need very advanced chip processes to stay competitive at the high end (the Kirin 9000 in the Mate 40 Pro is a 5nm chip), and the announced plans from Shanghai wouldn’t help. Huawei may look to manufacturing allies like the SMIC for more modest phone chips, but it’s still likely to cut back on its phone offerings once their existing supplies dry up.
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