Huawei he is going to have a new very heavy blow prepared against him, and this could be so serious that it could also block his production for many of the products he sells all over the world. More precisely, several senior representatives from the US presidential administration, and from the US Government, have agreed that strong new restrictive measures must be imposed against Huawei to further reduce its ability to launch new products.
Huawei he is going to have new restrictions imposed against him, which of course come through the partners who produce some of the components for the products he sells all over the world. I told you a few weeks ago that in the USA the modification of the trade laws is being discussed so that Huawei can no longer buy various software or hardware products, if they contain at least 10% of technology made in the USA, but regardless of which area they are made on the globe.
Huawei: New Tougher Measures that would Totally BLOCK its Production
Huawei he can now buy any kind of components for his products, and that's because many American companies produce them in China, or other areas of the world, and can sell them without problems, no matter how much American technology is in them. Well, Donald Trump is a bit fed up with this, and he wants Huawei to really feel the effect of his sanctions, so he wants even tougher measures imposed against the Chinese, and they could come very soon.
"Senior Trump administration officials have agreed to new measures to restrict the global supply of chips to China's Huawei Technologies. Under the proposed rule change, foreign companies using US chip-making equipment would have to obtain a US license before supplying certain chips to Huawei. One of the sources said the rule change is aimed at reducing sales of chips to Huawei by Taiwan Semiconductor Manufacturing Co.”
Huawei you won't be able to buy any kind of components made using American machines, and TSMC, the largest manufacturer of chips with processors for phones, etc., makes them exactly like that. If the US changes its legislation, then TSMC will no longer be able to produce anything for Huawei, and the Chinese will have no processors to use in the phones they sell all over the world, so they will have nothing to release.
Huawei would effectively have the activity blocked if the legislation will be modified in such a way by the presidential administration of Donald Trump, and as it seems, they are determined to do so.
