America’s intense pressure on Chinese companies, especially Huawei, is increasing day by day. Wanting to protect itself, Huawei has stocked enough American-made chips for the next two years.
Huawei is among the companies that are most affected by tensions between the USA and China. The firm’s 5G modems and infrastructures were at the heart of the US government’s reactions. According to reports, Huawei has stored enough for 2 years from the chips they will use in the most important transactions.
Huawei needs to work with an American or American company for many different parts. Especially Intel for processors and Xilinx for programmable chips are among the important suppliers of the company.
The most important parts are stored
According to the information published in the Nikkei Asian Review, the Chinese technology giant has stored a significant amount of chips called “the most important parts”. It is stated that the parts in the firm’s inventory can last 2.5 years under normal conditions.
There is no company that Huawei can access and get procurement service in the long term after the new decisions taken by the USA on May 15th. Washington also appears to be an obstacle to the Chinese manufacturer from producing and using their own chips.
Huawei has been storing parts for a long time
The Chinese company has actually been storing parts since 2018. Since the end of 2018, Huawei CFO Meng Wanzhou was arrested by US officials, the company has been preparing for possible Washington sanctions.
In the statements made by Huawei last week, it was announced that the company had a chipset, component and material accumulation of approximately $ 23.45 billion. The company’s first public announcements were made just 3 days after the statements from the White House.
Although it has not been disclosed which parts the firm stores, Xilinx has paid particular attention to Intel and AMD chips. Because it does not seem easy to find an alternative to replace these chips. These US manufacturers dominate 98% of the chip market.
US Administration is afraid of Huawei
The US administration objected to using Huawei for the F35 jet project, 5G infrastructure, and high-priority security systems, and stated that there are interests in the company’s products that the Chinese government claims to be able to use for espionage.
The tension between the USA and China led to the start of events, also known as the Trade Wars. On the other hand, the institutions that do business between the two countries were the ones most affected by this process.