Huawei’s siege may have eased a bit, at least as far as the mobile sector is concerned. The Financial Times reports that companies will be able to provide Huawei with components for non-5G applications.
More specifically, components that are not used in the company’s 5G network equipment. “Chips for mobile devices have been shown to be not a problem,” said an executive at an Asian semiconductor company.
Samsung Display is already licensed, and Jeffreys analyst Lee wrote that Sony and OmniVision were given a green light to supply Huawei with an image sensor. Sony’s imaging division has warned of a decline in sales, partly because it had to stop shipping to Huawei.
Lee believes Qualcomm and MediaTek can also be licensed to solve Huawei’s chipset shortage. The company was previously forbidden to buy chips from MediaTek (headquartered in Taiwan) because it was manufactured using technology developed in the United States.
Nothing has been announced as to whether TSMC will be able to resume shipping. This will allow Huawei to continue to use its Kirin chipset. However, industry experts have questioned that even Qualcomm and MediaTek have licensed and pointed out the “irregular policy decisions” of the current administration.
Huawei’s mobile business accounts for more than half of its revenue and could reopen once the chip supply chain recovers. However, the network equipment sector must rely on inventories accumulated prior to the ban, as the United States still considers it a threat to national security.