Browse By

Huawei blames US government for components scarcity problem

There is less and less hope that the problem of components scarcity will be solved in the short and medium term. Several of the world’s largest manufacturers have already assumed that the outlook is not at all easy.

Huawei blames US government for components scarcity problem

Huawei blames US government for components scarcity problem (Image: Anadolu Agency)

However, Huawei has now pointed the finger at the US administration. In other words, the Chinese company accuses the USA of being the main responsibles for the problem of scarcity of components.

We haven’t heard significant and controversial news for the soap opera Huawei vs USA for some time now. One of the last episodes happened about a month ago, when, due to tighter restrictions on Huawei, China accused Joe Biden and said that the United States was not a country to trust.

Many analysts point the finger at the pandemic but also at Huawei at the chip stock problem. This is because the Chinese brand acquired several components last year, motivated by the tight siege by Donald Trump administration.

However, Ren Zhengfei’s company now blames the US government for the lack of components on the market. According to Huawei, it was the sanctions imposed by the US that caused the panic when buying components and chips. Consequently, this situation ended up leading to a shortage of these products.

In a speech to analysts, Eric Xu, Huawei rotating chairman, said that before companies had no need to stock up on chips. However, now many manufacturers choose to have stock for a period of 3 to 6 months more. This trend ended up interfering with the coordinated work of the supply network. And component manufacturers simply cannot keep pace with orders.

Eric Xu, Huawei rotating chairman

Eric Xu, Huawei rotating chairman (Image: Huawei)

For Eric Xu, the USA is then largely responsible for this global economic crisis. In other words, due to the sanctions, the US government destroyed the partnerships and the existing trust in the chip supply network. As a result, several countries are now trying to have their own semiconductor production.

However, this situation will then promote an increase in the price of components and, consequently, of electronic equipment.

Huawei’s rotating president says that the Chinese company wants to find a solution, but has no opportunity to buy chips. The brand still has a certain stock of components, but it will not last long. In this sense, the company has invested in Research and Development in order to, in the future, be able to produce its own chips. And this path is already being traced by other Chinese brands.

Leave a Reply

Your email address will not be published. Required fields are marked *