Huawei ban takes effect: supply chain hit, possible layoffs

After the U.S. ban on Chinese telecom giant Huawei took effect, the company’s rotating chairman, Guo Ping, said at its annual meeting on Sept. 23 that the company’s supply chain had been hit and that it would do everything it could to help it grow. He also said the company would make personnel changes in specific markets if necessary.

Chinese telecom giant Huawei’s Chairman-in-Office Guo Ping told Huawei’s annual Connect Conference on Sept. 23 that the company’s supply chain had been hit and would do everything in his power to “help our supply chain be strong and grow,” according to the Central News Agency.

The U.S. last month further strengthened restrictions to block Huawei’s commercial chip acquisition pipeline, Huawei is under increasing pressure; but the U.S. restrictions still allow companies to apply for a license from U.S. authorities to continue to supply Huawei.

Huawei Consumer Business CEO Yu Chengdong said in August that the production of Kirin series cell phone chips will be discontinued from September 15.

Although Huawei has started stockpiling before the U.S. ban takes effect, analysts expect Huawei’s existing supply of Kirin chips to run out next year.

Huawei released its new operating system, Harmony OS, earlier this month in hopes of replacing the Android system in the event that Google is prohibited from providing updates to Huawei.

Also according to Reuters, Huawei’s Chairman-in-Office Guo Ping said that Huawei would be happy to use Qualcomm chips to make cell phones if Qualcomm is granted a license.

He also mentioned that the company has no specific business adjustment plan after the latest U.S. restrictions and is still assessing the impact. When asked about the layoffs, he responded that the company is currently financially and operationally stable, and will make personnel adjustments in specific markets if necessary.

Guo Ping said earlier that on September 15, the day the ban went into effect, Huawei only the last batch of chips into storage, the specific reserves are still in the statistical process; To B business chip reserves are still relatively adequate, cell phone chips are still actively looking for ways, suppliers are seeking a license from the U.S. government.

Intel a company spokesman said Tuesday, Intel has been issued a license by the U.S. authorities to continue to supply Huawei with specific products.

Washington has accused Huawei of handing over user data to the Chinese government for spying and urged governments around the world to abandon Huawei’s 5G. Since Sept. 15, the new ban has prohibited U.S. companies from supplying products or providing services to Huawei.