Huawei will stop production of its Kirin chips due to US sanctions

Chinese technology companies Huawei Technologies are running out of smartphones due to US sanctions. The company will be forced to stop production of its own Kirin chips next month due to sanctions. This was stated by the head of Huawei’s consumer division Richard Yu, according to the AP agency.

The United States has long accused Huawei of stealing technology and suspected spying for the Chinese government. But the Chinese company has been rejecting this for a long time. Washington last year limited Huawei’s access to US components and technology. Restrictions tightened in May this year, banning suppliers around the world from using US technology to make components for Huawei, the AP writes.

Yu said Huawei will stop producing its Kirin chips on September 15. These chips are made for the company by suppliers who need American production technology. “It’s a very big loss for us,” Yu told China Info 100. “Unfortunately, as part of the second round of US sanctions, our chip manufacturers only accepted orders until May 15th. Production will stop on September 15, “he added.

Huawei sold 240 million smartphones last year. Yu said this year’s sales volume is likely to be lower. However, he did not provide any further details, the AP agency wrote.

In the second quarter of this year, Huawei became the largest smartphone retailer in the world, according to the analytical group Canalys, after surpassing its South Korean competitor Samsung Electronics. Huawei benefited from sales growth in the Chinese market, but saw a significant decline abroad.


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