The United States hit Huawei with a massive asymmetric attack when it banned the technology powerhouse from accessing its semiconductor technologies. As expected, Huawei fell: “Huawei’s smartphone sales plunged 42% in the last quarter of 2020 as it struggled with a limited supply of microchips due to the sanctions.” I did note when that happened that Huawei had limited options, since the United States through companies like Cadence and Mentor, control more than 98% of the CAD software used for making high-end integrated circuits. Cut-off anyone, and that firm dies.
So, with no option, Huawei has moved into pig farming and improving the mining sector with technologies. Certainly, those ones do not require the precision required in modern smartphones. But this game is not over: China is planning to ban the export of rare earth metals to the United States as a retaliation for cutting Huawei out of the global chip supply chain. If that happens, you can indeed make the designs but will struggle with materials to fabricate the chips. Of course, unlike CAD systems, the US has options on the materials which can be sourced from other areas, though at a higher cost.
But everything now depends on President Biden, and how he plays with China and Huawei.
The Chinese telecoms giant was stopped from accessing vital components after the Trump administration labelled it a threat to US national security.
In response to struggling smartphone sales, Huawei is looking at other sources of revenue for its technology.
Along with Artificial Intelligence (AI) tech for pig farmers, Huawei is also working with the coal mining industry.
Former US President Donald Trump claimed Huawei can share customer data with the Chinese government, allegations it has repeatedly denied.
As a result, the world’s largest telecoms equipment maker has been limited to making 4G models as it lacks US government permission to import components for 5G models.Huawei’s smartphone sales plunged 42% in the last quarter of 2020 as it struggled with a limited supply of microchips due to the sanctions.
Huawei has also been locked out of the development of 5G in a number of countries, including the UK, amid fears over national security.
He wants to develop technology for coal mines that will lead to “fewer workers, greater safety, and higher efficiency” and enable coal miners to “wear suits and ties” at work.
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