While Huawei will soon be unable to source chips, the manufacturer is entering "a chaotic survival mode," internal sources say. The manufacturer is putting pressure on suppliers to increase the rate and stock a maximum of components before the final ban.
On August 17, 2020, Donald Trump signed a new decree dealing a fatal blow to Huawei. The Chinese manufacturer's suppliers using American technologies will no longer be able to deliver components to it. Great Lord, the American President has still granted a delay to the world number 2: suppliers can therefore continue to deliver their customers until September 14, 2020.
Huawei therefore had a month to turn around. As the fateful date approaches, the manufacturer seems to be putting insane pressure on its suppliers to store a maximum of components. In any case, this is what Nikkei indicates, which relies on several internal sources. Huawei Technologies would stock up on 5G processors, antennas, WiFi chips and even screen components. The company would not hesitate to put pressure on its suppliers, including MediaTek, Realtek or Novatek RichWave. A source indicates:
It's not uncommon for Huawei to call suppliers at 4 a.m. or host a conference call at midnight these days. Huawei is now in a chaotic survival mode where it has to constantly change its plans.
Huawei may do everything to reassure, the house is on fire. Recently, many HiSilicon engineers left the ship, believing the builder's pirouettes (he wants to use chips etched in 45nm) to keep his head above water to be hopeless. Moreover, analysts are not mistaken and predict a drop in sales of around 75% for the Chinese giant. Another source tells Nikkei that Huawei must "Do with American regulation, but try to meet the needs of consumers". And to add:
We only have three weeks left to send products to Huawei, so we will send well-finished chips, but also half-finished or factory-shipped chip wafers unpacked and tested.
Not very reassuring all that.