Huawei’s influence in the smartphone market has been drastically reduced since the sanctions imposed by the US under the Donald Trump administration. Contrary to what many speculated, the executive headed by Joe Biden actually tightened these restrictions instead of easing them.
As the Reuters agency now points out, this set of sanctions on Huawei’s business has just been reinforced. A new range of decisions that could dictate the final goodbye of this brand to the world of smartphones.
Ban on Huawei from acquiring any US-influenced technology
A new decree was recently passed to revoke any current licenses allowing US companies to export products to Huawei. This document thus blocks Huawei’s access to Qualcomm processors.
This time, Huawei is not only limited in access to 5G technology. The new sanctions package prohibits the Chinese from accessing any technology linked to 4G, Wi-Fi 6 and 7, artificial intelligence and high-end and cloud computing products.
As if that were not enough, Huawei is prevented from cooperating with processor-producing companies such as Samsung and TSMC. In other words, Chinese technology will have to invest in Chinese production lines at a clear disadvantage compared to the two largest component producers in the world.
This means that Huawei’s continuity in the smartphone market is seriously compromised. Not being authorized to purchase processors from Samsung and TSMC leaves few options for new product development and production mobile.
Although you can collaborate with Chinese entities, they do not have the means that Samsung or TSMC currently have. Most of these are dedicated to the production of low-end components, that is, not viable for the production of high-end products.
Huawei’s PC market may also be threatened, as the brand can’t buy components associated with the Wi-Fi 6 and Wi-Fi 7 standards. In other words, even Intel should be prevented from continuing its long-standing collaboration with Huawei.
In short, Huawei’s future in the technology market is increasingly dark. The new set of restrictions signed by the Biden administration seriously compromises the production of new equipment.