Financial magazine Caixin said on Saturday that Huawei will stop manufacturing Kirin chips next month, as US pressure grows on the Chinese tech giant.
The CEO of Huawei's Consumer Business Unit, Richard Yu, said upon the launch of the company's new phone, "Mate 40" (Mate 40) - that the American pressure on Huawei's suppliers made it impossible for the company's HiSilicon chip division to continue making chips and key components. For mobile phone.
He added, "From next September 15 onwards, our pioneering Kern processors cannot be produced, nor can our artificial intelligence chips be processed; this is a big loss for us."
"Huawei started exploring the chip sector more than 10 years ago, our beginnings were a little behind, then we evolved to catch up, and finally we reached the leadership," Yu was quoted as saying, "We have invested enormous resources for research and development, and went through a difficult process."
In light of the deterioration of relations between the United States and China, Washington is pressing governments around the world to put pressure on Huawei, under the pretext that it is handing over user data to the Chinese government with the aim of espionage. Huawei denies it is spying for China.
The United States is also seeking to extradite Huawei CFO Ming Wanzhou to Canada, accused of bank fraud.
In May, the US Commerce Department issued orders requiring software and manufacturing equipment suppliers to refrain from doing business with Huawei without first obtaining a license.
Huawei's HiSilicon division relies on software from US companies such as Cadence Design Systems Inc (Synopsys Inc) to design its chips, and it is also outsourcing production to Taiwan's TSMC, which uses equipment from American companies.
Hi Silicon produces a wide range of chips, including its line of Kern processors, which only power Huawei smartphones, and are the only Chinese processors that can compete with Qualcomm in terms of quality.
The American Wall Street Journal reported that the US chip maker Qualcomm is pressing the US government to cancel restrictions imposed on the sale of components to Huawei, after the United States placed the Chinese company on the blacklist.
And according to an offer made by Qualcomm, it is pressing to sell the chips to Huawei, which the Chinese company will include in its fifth generation phones.