The US trade ban on Huawei has been in effect since 2019, and its impact on the Chinese brand has been significant. The loss of support from Google and access to major chip foundries has severely limited Huawei's ability to produce high-end devices.
The US Government is Making New Moves Against Huawei
Despite some signs of recovery, the recent steps taken by the US government may prove to be the final blow to Huawei's phone business. The latest update on the trade ban policy prohibited Huawei from using the 5G version of Qualcomm SoCs in its phones.
According to the story by Giz China, as a result, the company was only allowed to use 4G Qualcomm Snapdragon processors. Now, the Biden administration has taken things a step further by stopping the grant of export licenses to US companies that Huawei relies on.
The Export Ban to Prohibit Items Below the 5G Level
This means that Huawei will no longer have access to many of the key components it needs to manufacture its upcoming phones. The prohibited export items include all things below the 5G level, such as 4G items, Wi-Fi 6 and 7, artificial intelligence tech items, and high-performance computing and cloud items.
The loss of access to these items means that Huawei may not have a viable source for its flagship silicon for its phones. The company is already banned from using chip foundries such as Samsung and TSMC, so its only option may be Chinese foundries, which are less sophisticated and offer only budget silicon, as explained in an article by Android Authority.
The Loss of Important Components Will Greatly Affect Huawei's Ability to Compete
The US trade ban on Huawei has been a major setback for the company, and the recent steps taken by the Biden administration may prove to be the final nail in the coffin for Huawei's phone business, according to an article by Reuters.
The loss of access to key components and advanced technologies may make it impossible for Huawei to produce competitive phones in the future. While the company has been showing signs of recovery, its hopes of staying in business are becoming increasingly slim.
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US Trade Ban has Affected the Company Since 2019
The US trade ban on Huawei has profoundly impacted the Chinese brand, and the recent steps taken by the Biden administration may prove to be the final blow to Huawei's phone business. The loss of access to key components and advanced technologies may make it impossible for Huawei to remain a viable competitor in the smartphone market.
In conclusion, the US trade ban on Huawei has been a major obstacle for the brand since 2019. The recent escalation of the ban by the Biden administration, which stops the grant of export licenses to US companies, may result in the complete downfall of the brand.
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