Huawei says it needed to rush to stockpile chips forward of the newest tightening of commerce restrictions from Washington, which has hit its provide onerous.
“Continuous aggression from the US authorities has put us below vital strain,” Guo Ping, who chairs the corporate, mentioned.
“Proper now, survival is the purpose.”
The corporate urged the US to rethink the foundations, which make it troublesome for Huawei to purchase important components for merchandise comparable to telephones.
US President Donald Trump’s administration has focused various Chinese language corporations over alleged national-security points – together with:
- {hardware} producers comparable to Huawei
- software program suppliers TikTok and WeChat
Huawei, particularly, has been battling US restrictions in some type for 2 years.
And since 15 September, the corporate can now not purchase key chips from its producers.
Talking at Huawei’s annual business occasion, in Shanghai, Mr Guo mentioned the change had “introduced nice challenges to our manufacturing and operation”.
“When it comes to the chips, in the course of September, we simply rushed to stockpile some,” he advised reporters.
Huawei mentioned it had adequate provides to maintain its business-to-business operations – comparable to 5G infrastructure – working easily.
However it’s reportedly going through shortages in key components for its smartphone enterprise, the place it stays one of many world’s largest producers.
Huawei is trying to find new suppliers, with Mr Guo suggesting main chipmaker Qualcomm as a potential supply – if it will probably get a licence from the US to produce them.
“If the US authorities permits it, we’re nonetheless keen to purchase merchandise from US corporations,” he mentioned.
It views the allegations of national-security issues as a smokescreen, alleging the restrictions are actually an try to break competitors to US corporations.