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Companies can resume work with Huawei

The Huawei blockade may be easing a little, at least as far as the company’s smartphone division is concerned. The Financial Times reports that companies will once again be able to supply Huawei with components that could be used for purposes other than 5G.

More specifically, the components that will not be used in the company’s 5G network equipment. “We have been told that mobile chips are not a problem,” says an executive at an Asian company that specializes in semiconductors.

It is worth noting that Samsung Display has already obtained a license to resume its work with Huawei, and an analyst at Jefferies explained that Sony and OmniVision have also been given the green light to provide Huawei with smartphone camera sensors. Sony’s sensor division has warned of declining sales, in part because it has been forced to halt shipments to Huawei.

Analyst Mr. Lee said Qualcomm and MediaTek could also obtain licenses, which would solve Huawei’s processor shortage. The company was previously banned from purchasing processors from MediaTek, as MediaTek manufactures its own processors using the technologies developed in the United States of America.

There is no information about whether TSMC will be allowed to resume work with Huawei, because this is what will enable Huawei to continue using its HiSilicon Kirin Series processors. However, some experts expressed doubts that the US government would allow even Qualcomm and MediaTek to resume work with Huawei, citing the “erratic political decisions” of the current administration as the reason behind this.

Likewise, it is still unclear whether Huawei will be allowed to use the software and services of US companies in its smartphones, as this could have huge implications for Huawei and Honor devices that will regain access to Google’s applications and services.

The smartphone division is responsible for more than half of Huawei’s revenue, and this division may resume operations if the supply chain of chips and processors is restored. However, the Network Equipment Division will have to rely on inventory gathered prior to the ban since the US government still views Huawei’s 5G network equipment as a threat to its national security.

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