Key suppliers granted approval to resume business with Huawei4
Due to sanctions imposed by the US, a good many of Huawei's supply chain partners can no longer conduct business with the company. As a result, it can neither make its own Kirin chips nor procure crucial components from other companies.
The restrictions have begun to subside, per a new Financial Times report.
Apparently, the US continues to view Huawei's 5G gear as a security threat, and it has still not permitted the sale of base stations and server processors meant for the company's telecom business.
The report says that the US Department of Commerce is willing to approve components shipments to Huawei as long as the 'technology does not support 5G.'
This has been interpreted by many as a green signal for vendors to resume business with the consumer unit of Huawei, which also includes smartphones, and accounts for over half of its revenue.
Samsung and Sony have already resumed business with Huawei
Over 300 companies have applied for licenses so that they can continue doing business with Huawei. A third of them, including Intel and AMD, have apparently been granted approval.
Investment bank Jefferies' analyst Edison Lee believes that Qualcomm and MediaTek will also be given the go-ahead to sell chips to Huawei later this year.