Huawei unit says long prepared for US ban
HONG KONG: Huawei Technologies Co Ltd’s chip arm HiSilicon said it has long been prepared for the “extreme scenario” that it could be banned from purchasing United States chips and technology, and is able to ensure steady supply of most products.
HiSilicon, which mainly designs chips for Huawei equipment, made the comments in a letter to staff attributed to president He Tingbo dated “the small hours of May 17”, shortly after the US officially banned Huawei from buying US technology without special approval.
The ban has thrown into disarray prospects for sales at some of the largest tech companies and drew a sharp rebuke from Beijing, ratcheting up tensions over trade.
HiSilicon had been secretly developing backup products for years in anticipation of the unlikely scenario that Huawei might one day be unable to obtain advanced chips and technology from the US, said He in the letter.
HiSilicon’s efforts had ensured a steady supply and “strategic safety” of most products, he said, adding that Huawei would aim to be technologically self-sufficient.
He described HiSilicon’s efforts as a “long march in the history of technology” that would now pay off with the “crazy decision” by the US that brought this “extreme and dark moment”.
Now was the time for “all the spare tyres in the safe to become useful,” he said in the letter.
Huawei has already been using chipsets called Kirin, designed by HiSilicon, in its high-end smartphones, with the manufacturing handled by foundry companies such as Taiwan Semiconductor Manufacturing Co.
Huawei also uses some chipsets from Qualcomm Inc and MediaTek Inc.
Huawei’s rotating chairman Eric Xu had said the HiSilicon produced more than US$7.5 billion (RM31.38 billion) worth of chips last year.
That compares with an estimated US$21 billion worth of chips that Huawei acquired from outside vendors.
A spokesman said Huawei would use HiSilicon products to substitute for banned American components where possible, but declined to give details.
A similar US ban on China’s ZTE Corp had almost crippled business for the smaller Huawei rival early last year before the curb was lifted.