The new rules haven’t even been fully implemented yet but it’s already affecting the company due to the uncertainty it has suddenly found itself in regarding the phone’s most important component. Huawei has now been forced to take stock of its existing inventory of HiSilicon chips and reassess its capability to mass-produce its next batch of smartphones. This, in turn, could force it to delay the production and subsequent launch of the Huawei mate 30 series by at least a month or two.
The US Commerce Department last month decided to plug up a loophole that Huawei allegedly used to get around restrictions on its use of US products and technologies. The new export rules basically prevent any US company from supplying semiconductor parts, materials, or services that would end up either in Huawei’s hands or one of its affiliates such as HiSilicon.
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