Recent reports claim that Qualcomm is lobbying the U.S. government to allow it to supply 5G chipsets to Huawei.
The bitter trade war between China and the United States has resulted in the disruption of many supply chains. Huawei is now facing a shortage of chipsets due to this ban. Now, Qualcomm is lobbying to lift the ban and allow it to sell 5G chipsets to the Chinese tech giant.
Bitter trade war
Due to the trade war, the supply chain of Huawei was heavily disrupted. One of the company’s chipset provider, TSMC, is also barred from delivering supply. The Chinese tech giant relies heavily on TSMC to provide it with its own in-house HiSilicon Kirin chipsets.
Huawei said that if the ban continues, it will look for alternative chipset providers. This means that the upcoming Mate 40 device will be the last to use its own Kirin chipset.
— TheMobileHunt (@the_mobile_hunt) August 7, 2020
Qualcomm understands this quandary, and it is not the only company that stands to profit from it. It says that if the government does not lift the ban, rivals like Samsung and MediaTek will reap the reward. This will prove to be a huge blow for the company, which counts Huawei as one of its biggest partners.
The company claims that the trade ban will not deter Huawei to look for alternative chipset providers. For that matter, tech giants like Samsung and MediaTek will be happy to oblige for that demand. The American chipmaker is expecting to lose a massive $8 billion revenue if that happens.
In a statement acquired by the Wall Street Journal, the tech giant said:
“If Qualcomm is subject to export licensing, but foreign competitors are not, US government policy will cause a rapid shift in 5G chipset market share in China and beyond.”
A race for 5G supremacy
Many tech experts that the future of the industry is looking towards 5G. It comes as no wonder why big tech companies are jumping into its research and development. Moreover, telecommunications companies around the globe are also busy rolling out 5G infrastructure.
Should Huawei and Qualcomm arrive at a deal, it will not be the first time. Before the trade war, the two tech giants rely on each other for trade. Huawei needs the hardware, and the American chipmaker is always there to provide it.
Considering the current political climate between the U.S. and China, Qualcomm will have a hard time lifting the ban. Huawei is also starting to outsource some of its supplies to firms not affiliated with the United States.
Featured image courtesy of Michael Vi/Shutterstock