Jakarta, Selular.ID – Last week news broke out that Qualcomm will be able to sell its chips to Huawei again. And as it turns out, there is a big advantage behind it all.
It was previously reported that the US considered Huawei’s 5G equipment a threat to the country’s security and would allow the delivery of components only if “the technology does not support 5G.”
As time goes by, it seems that the US Department of Commerce is not only referring to the Chinese company’s telecommunications business, but also 5G-enabled smartphones.
Seeking Alpha reported KeyBanc analyst John Vinh as saying Qualcomm has obtained an export license to sell 4G chips to Huawei, not 5G SoCs.
Huawei is currently one of the industry leaders when it comes to 5G phones and the inability to sell handsets that support next-generation cellular connectivity will significantly impact its market position.
However, the company is not in a position to bid, given the very limited options, and without chips, the company could be forced out of the smartphone industry.
Huawei has also reportedly concluded a deal to sell the sub-brand Honor, which is a prerequisite for buying chips from Qualcomm.
It is not yet known whether these conditions prompted Huawei to release its subsidiaries or make decisions independently.
Taiwan Semiconductor Manufacturing Company (TSMC) also appears to have received the green light to continue business with Huawei as long as it only supplies chips made using legacy fabrication technology and not advanced lithography processes such as 7nm and 5nm.
Huawei is also reportedly planning to set up a chip factory in Shanghai that is free of American technology. The fabrication facility will initially manufacture 45nm chips, before expanding to 28nm and 20nm chips over the next two years.
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