Chinese telecommunications giant Huawei has bought enough chips in advance to equip 5G networks, so that it will have enough stock for at least the end of next year. This is the conclusion reached by Bloomberg.
Thus, the company outwitted the administration of US President Donald Trump, providing for the form that the sanctions would take. The corresponding restrictions came into force in August this year, but Huawei began to buy processors at the end of 2019, so it even baffled their manufacturer Taiwan Semiconductor Manufacturing Co. (TSMC).
At first, TSMC assumed that it had significantly underestimated the global demand for communication chips for 5G. As a result, the company sold more than two million such processors to Huawei.
At the moment, the article notes, Tiangang chips will be enough for 5G base stations for the largest Chinese mobile operators – China Mobile, China Telecom and China Unicom. The home country remains a key market for Huawei, with more than half of its 5G development orders this year.
Meanwhile, the United States does not abandon its attempts to force other countries to abandon the development of 5G networks based on Chinese equipment. Australia, Japan, Great Britain and Sweden have already made such a decision, representatives of Washington have offered Brazil a billion dollars if the country starts cooperation with competitors Huawei.
In turn, China has threatened Sweden that if it does not lift the ban on the use of Huawei equipment to create 5G networks, it will be harder for Swedish companies in the Chinese market.