Blockade Coping: Huawei Delays

Civil War blockade

“We now see the postponement of the mass production of Mate series will be for at least one to two months,” Nikkei quotes, as Huawei develops new designs to use Mediatek and perhaps Samsung processors. Blocking TSMC at Hisilicon is forcing Huawei to scramble for alternate chip sources. Alternate chips are never exactly the same and time needs to be taken for redesign.

Samsung may be able to produce 7 nm advanced chips for Huawei despite the U.S. blockade. “It has built a small, 7nm production line that doesn’t use U.S. equipment,” Lucy Liu reports at EET Asia. There’s no official confirmation, but EE Times has a strong reputation for accuracy.

Nikkei and others have reported that Huawei has 6 to 18 months of chips stockpiled.

That means the company has time to adjust. The Chinese government believes TSMC blocking Huawei is against international law and is applying pressure for the ban to be reversed. The U.S. is unlikely to change policy before the November election. After that, the many voices saying that a trade war with China hurts the U.S. may find a hearing.

The U.S. trade policies are self-defeating in way D.C. doesn’t grasp. From German automakers to Samsung to Oppo in China, every company is looking for ways not to be dependent on the U.S.

Over time, that will cost at least a single digit share of the $2.5 trillion annual U.S. exports.

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