Tech giant Huawei appears to be feeling the heat as relations between China and the United States rapidly deteriorate.
The controversial Chinese technology company plans to stop making its flagship Kirin chipsets, which are crucial for its 5G strategy, in September, according to the influential Caixin financial magazine.
Since Huawei was placed on a blacklist by the US Department of Commerce, the 5G pioneer has come under increasing “pressure.”
Links to China’s CCP
“US pressure on Huawei’s suppliers has made it impossible for the company’s HiSilicon chip division to keep making the chipsets, key components for mobile smartphones,” Yu Chengdong, the chief executive of the group’s consumer business division, was quoted as saying by Caixin at an industry forum on August 7.
For the past 12 months, Washington has warned about Huawei’s close links to China’s ruling Communist Party.
US President Donald Trump has even expressed strong concerns that Beijing could use the telecom company’s networking systems across the world for espionage or cyber-sabotage. Huawei has repeatedly denied the allegations.
Still, with Sino-American relations at their worst in decades, Washington has campaigned for governments around to world to block Huawei from their 5G rollouts.
Flagship Kirin processors
In May, the US Department of Commerce ordered US suppliers of software and manufacturing equipment to stop doing business with the group unless they obtained a special license.
“From September 15 onward, our flagship Kirin processors cannot be produced. Our AI-powered chips also cannot be processed. This is a huge loss for us,” Yu said as reported by Caixin after the HiSilicon subsidiary found it impossible to obtain components and software from the US.
Since the story broke, Huawei has declined to comment further about the decision.