China's Huawei Faces HiSilicon Loss; US Company Qualcomm to the Rescue?

China's Huawei Faces HiSilicon Loss; US Company Qualcomm to the Rescue?

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China-based Huawei was banned in the United States until May 2021. Though it seemed like American companies will be happy with this decision, Qualcomm speaks on the opposite. Reportedly, the California-based company is looking for ways for Huawei to have easier restrictions under the country. 

Why Qualcomm wants a partnership with Huawei?

(Photo : REUTERS/Aly Song)
A Qualcomm sign is seen at the second China International Import Expo (CIIE) in Shanghai, China November 6, 2019.

Huawei out of the country, the impact was pretty solid. The Taiwan Semiconductor Manufacturing Company (TSMC) that usually manufactures Kirin chips on Huawei devices, now quits its partnership with the Chinese company. 

This means Huawei only have two choices: either to buy from Taiwan’s MediaTek and South Korea’s Samsung; or let another U.S. company like Qualcomm to supply for their demand. 

To push through the 5G dream of the company, they needed chip semiconductor products to make it happen. And this involves a lot of money. 

That is the reason why Qualcomm is now speaking to the government. The Wall Street Journal first reported that the California-based company has been finding a way to ease the restrictions against Huawei. 

“Billions of dollars” are at stake once Qualcomm fails to talk to the U.S. for the Huawei ban. Qualcomm’s proposal is for the government to give them a license in order to sell 5G chips to Huawei.

Specifically, the executive order says that there will be no phone components that will be sold to Huawei once the ban takes effect. Interestingly, once Qualcomm is approved to have a license, the executive order will have no strong basis no more.  

However, once the government refused to make it happen, the government may have to face loss in economical state due to Huawei’s huge financial contribution.

Why Huawei was banned?

China's Huawei Faces HiSilicon Loss; US Company Qualcomm to the Rescue?

(Photo : REUTERS/Matthew Childs)
Huawei logo pictured outside its headquarters building in Reading, Britain, July 14, 2020.

The U.S has long alleged that Huawei had its close connection with the Chinese government. That is the reason why the White House continues to fight against its presence in the country. 

Huawei already warned from the past that the U.S. will face ultimate repercussions due to this sudden banning.

“The US is leveraging its own technological strengths to crush companies outside its own borders,” Huawei responded in a statement. “This will only serve to undermine the trust international companies place in US technology and supply chains. Ultimately, this will harm US interests.” 

So far, it was not confirmed whether Qualcomm actually talked to the government for easier rules against the Chinese company. The sure thing is that once it failed to do so, the U.S economy may lose billions. 

ALSO READ: Huawei Removal From the United Kingdom: British Telecom Says, There Will be ‘Outages’ and ‘Risks’ Once Chinese Tech Company is Out

This article is owned by Tech Times

Written by Jamie Pancho 

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