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Author Topic: Huawei rumored to replace US equipment with South Korean semiconductors  (Read 20 times)
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« on: June 03, 2020, 01:02:03 PM »

According to a new rumor, Huawei is preparing for the prolonged disputes between the US and China and is currently in works to replace US equipment. The Chinese tech giant recently lost its chip supply from TSMC due to US sanctions and is now, reportedly, looking into alternatives from South Korea.

Sources close to the matter revealed that Huawei is investigating whether or not to use US technologies against partners in its supply chain. For those unaware, the US had enforced sanctions which targetted US-based technology that was being used by foreign companies like TSMC, this essentially had Huawei’s supply cut off. So in simpler terms, the smartphone vendor is checking to confirm whether US technology was actually used in their semiconductor equipment.

Furthermore, Huawei is also visiting various semiconductor-based companies in South Korea. These manufacturers could potentially serve as alternatives within its supply chain, although, the details of these visitations are currently unknown. However, the timing is quite suggestive of talks already taking place for a new deal.

At the moment, Huawei already has a massive inventory of chips that will last for up to 2 years. But the company is also heavily investing in the semiconductor industry, even encouraging Chinese companies to step up and rival the US. The semiconductor field is integral to Huawei’s product and service offerings, so while the US sanctions do hamper its operations, the company is actively working on working through the issue.


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