US ban on Huawei will come into effect on September 15

In May of this year, the Bureau of Industry and Security (BIS) of the US Department of Commerce announced that it will strictly restrict Huawei from using US technology and software to design and manufacture semiconductor chips. This move will further enable Huawei to be subject to US export control policies. Limited. Huawei China responded to this, except for victory, we have nowhere to go. And September 15 is the day when the new US ban on Huawei officially took effect. On and after September 15th, TSMC, Qualcomm, Samsung, SK Hynix, and Micron will no longer supply chips to Huawei.

On August 17 this year, the U.S. Department of Commerce further tightened restrictions on Huawei’s access to American technology, and at the same time included Huawei’s 38 subsidiaries in 21 countries around the world on the “Entity Listh . 

The official website of the US State Department stated that the US Department of Commerce expanded its foreign direct product rules, which would prevent Huawei from circumventing US laws by “alternative chip production” and “providing off-the-shelf (OTS) chips produced with tools obtained from the United States”. That is, the US Department of Commerce is trying to “block” Huawei’s outsourcing chip program .

Naijatechnews learned that in the August ban, the US Department of Commerce has added several new rules. For example, products based on American software and technology cannot be used to manufacture or develop any parts, components, or equipment produced, purchased, or ordered by any Huawei subsidiary (in the entity list). In addition, the regulations also restrict Huawei in the entity list from participating in related transactions as a “buyer”, “intermediate consignee”, “ultimate consignee” or “end user”, provided that permission must be obtained.

The impact of the US ban on Huawei will be far beyond imagination.

First of all, the Kirin 9000 equipped with Huawei’s upcoming Mate 40/Pro will become a swan song. Yu Chengdong has stated that after September 15th, TSMC will not be able to produce chips for it. This is likely to be the last high-end Kirin chip. Analysts said, Kirin 9000 stocks about 10 million pieces, which is expected to last for half a year .

At TSMC’s second-quarter performance briefing, TSMC stated that the company did not plan to continue to supply Huawei after September 14. This is the most deadly content.

Micron Technology previously stated at the BMO Capital Markets Chip Conference that the company will not be able to ship to Huawei after September 14, which caused at least two analysts to lower Micron Technology’s target price on Thursday. Stopping supplies to Huawei will reduce Micron’s revenue by 10%.

It is reported that Samsung and SK Hynix have previously stated that they will stop selling parts and components to Huawei, but the latest developments show that both Samsung Electronics and SK Hynix have applied for approval to the US Department of Commerce to obtain a license to export semiconductors to Huawei.

According to news, Huawei has ordered 120 million chips from MediaTek. However, after the ban was issued, MediaTek responded: “The company has always followed global trade-related laws and regulations and is paying close attention to changes in U.S. export control rules and consulting external legal counsel to obtain the latest regulations in real time for legal analysis to ensure compliance with relevant rules. According to the assessment of existing information, it has no significant impact on the company’s short-term operating conditions.” According to the latest news, MediaTek confirmed to the outside that the company has applied to the US in accordance with the regulations, and strives to continue to supply Huawei after September 15.

Samsung and LG Display will temporarily stop supplying high-end smartphone panels to Huawei. In addition, Samsung Display, a subsidiary of Samsung Electronics, has applied for an export license to continue to supply Huawei.

At the recent Huawei Developers Conference 2020, Huawei’s executive director and CEO of consumer business Yu Chengdong said in a keynote speech that in the most recent quarter, Huawei’s mobile phones have achieved the number one position in the global and domestic markets, with the domestic market share exceeding 51%. Yu Chengdong said that Huawei’s mobile phones have been out of stock in the domestic market. He also thanked the partners for their willingness to maintain cooperation with Huawei and build an ecosystem together with Huawei during difficult times.

Yu Chengdong said that after three rounds of sanctions, Huawei’s global mobile phone shipments reached 240 million last year, ranking second in the world. In the first half of this year, global mobile phone shipments reached 105 million, and consumer business sales revenue was 255.8 billion yuan. For this he expressed his gratitude to consumers around the world.

Huawei’s Wang Chenglu said that Huawei’s mobile phones do not know if they will decline next year, at least they have not yet declined, and they are still growing very fast.

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