U.S. sanctions on Huawei hurt chip supply and growth, executor says

HONG KONG – A Huawei executive says recent U.S. sanctions have created a computer chip crisis for the company, hurting the growth of its smartphone business.

At a company conference for developers on Thursday, Richard Yu, president of consumer business at Huawei Technologies, said the company still managed to gain 51% market share in the Chinese smartphone industry.

The United States has imposed various sanctions on Huawei, citing national security concerns. The latest, ordered in August, barred foreign semiconductor firms from selling chips to Huawei using American technology.

“Even after this third injury, we are still able to achieve growth,” said Yu, who acknowledged that growth had been affected over the past month.

In May, chipmakers were banned in the United States from using technology and software in the United States to design chips from a Shenzhen-based company to design chips without a license.

A year ago, the U.S. government banned Huawei from doing business with U.S. companies, blacklisting the company after Huawei’s national security threat.

The United States has accused Huawei of plotting to assassinate the Chinese government and called on its allies to remove Huawei from its telecommunications network. Huawei has vehemently denied the allegations.

This trade blacklist has alienated Huawei from suppliers such as Google, which supplied Huawei smartphones with the Android operating system and Google mobile services such as Gmail and YouTube. Huawei has since developed Huawei mobile services, including a new app store that is designed for new smartphone models.

Despite trouble with Washington, Huawei shipped 240 million phones worldwide in 2019, and was the world’s second-largest smartphone maker. In the first half of 2020, the company earned 434 billion yuan (about $ 3 billion), up 13.1% from the same period a year ago.

U said the company plans to make its proprietary operating system HarmonyOS available for devices including its smartphones, some of which still run on the Android system. Earlier, the company said that HarmonyOS was among others for devices like smartwatches and TVs.

Jane Sue, Associated Press

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