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| Huawei is delaying the production of its flagship phones after the US sanctions |
According to a new report from Nikkei Asian Review, Huawei has informed suppliers that the production of its latest flagship smartphones will be delayed in 2020.
Before this decision, the Chinese technology giant was affected by the recent US sanctions, which led to its loss of TSMC mobile phone supply.
The Chinese technology company is investigating a possible supply chain disruption due to the U.S. strike.
Huawei is said to have requested to cease production of certain parts of the following series (Huawei Mate 40). The company also cut orders for certain parts in the coming quarters.
After the new regulations come into effect, Chinese smart phone suppliers are now evaluating the impact of stringent export controls on their smart phone business.
The United States has introduced an order prohibiting non-Huawei suppliers from using American chip makers according to Huawei specifications.
This has forced Chinese telecom equipment manufacturers to reevaluate their stock of marine silicon chips and search for alternative suppliers of mate series chips as the company tries to strike a balance between smartphone production and demand next year.
According to the annual calendar, Huawei usually launches the last series of major cell phones (partners) in the second half of the year, which are often flooded with compelling versions such as the latest iPhone series from Apple.
Huawei smartphones mainly use HiSilicon chip (Kirin) processors. Although this Chinese company designs its chips, it is manufactured by TSMC, which means that it has lost its main chips supplier.
The world's second largest smartphone manufacturer has reassessed the situation, searched for alternative products and invested in local semiconductor companies with long-term plans.
Other suppliers said that after preparing a large number of parts in anticipation of U.S. sanctions in the first half of 2020, Huawei wanted to cut its orders by 20% in the coming quarters.
One of the pioneers of the chip supplier said, "Huawei informed us that it will reduce orders by about 20% between July and September, and that this number may continue to increase in the December quarter."
The report said: It is clear that the company has delayed the mass production of the (Mate) series from one to two months at least, as Chinese companies continue to create problems and solutions under the new US restrictions. In preparing the final supply chain.
This year, after the coronary virus epidemic and the constant pressure from the United States, Chinese society switched from smartphones to telecommunications.
With China accelerating the deployment of its technologies nationwide, the company has received orders to provide most of the 5G network infrastructure for Chinese telecom operators.
According to reports, the shift in the production schedule does not necessarily delay the release of the latest model from the colleague, as the Chinese company can display its products first and then start selling once the final product is finished.