Huawei is in Real Trouble After ARM Cuts Business Ties

Last week, Huawei was added to the US government Entity List which bans US companies from doing business with the Chinese company. Just like any other Chinese technology company, Huawei is also mainly dependent on US companies. Google revoked the Android license which makes it impossible for Huawei to offer Google Play services built-in with its future smartphones. Earlier this week, the company got 90 days period to settle its businesses with the US companies.

Talking about the hardware, the company also has to resource several parts from other companies across the globe to built its products. As of now, Huawei is the only Chinese smartphone manufacturer to have its own chipset division. Since the HiSilicon Kirin chipsets are produced by Taiwan-based TSMC, future production might not get impacted by the US government’s executive order. However, the Kirin chipsets are based on ARM architecture. The Kirin 980 SoC is the world’s first mobile processor to feature ARM’s Cortex-A76 cores.

Now the latest report suggests UK-based ARM Holding is immediately cutting its business deals with Huawei. According to BBC, the company’s design includes US-origin technology which makes it fall under the US government’s ban. While the ban is now delayed 90 days, the company hasn’t yet revived its business operations with the Chinese tech company. Huawei which is expecting the ban has already stockpiled 3 months worth of stock.

However, the company is rumored to be working on the new Kirin 985 chipset for the upcoming Huawei Mate 30 smartphones. Without support from ARM, the company won’t be able to develop any new chipset. The delay in the production of new Kirin chipset will be the first evert major setback for the company. While Huawei is working from the last few years to build alternatives on the software front, it’s highly impossible to implement the same for the hardware parts. Stay tuned on Phone Radar for more details!

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