A fresh piece of information has revealed that Huawei Technologies is slowing down the production of its flagship devices for 2020. It is obviously as a result of the sanctions placed on the company by the US government. The sanctions placed on Huawei also led to the loss of its mobile chip supply from contract chipmaker, TSMC.
Based on reports, Huawei has instructed its suppliers to slow down the production of its upcoming flagships as the company considers potential supply chain disruption following the restrictions placed on them by the United States.
Presently, the Chinese firm is accessing the impacts of the standing regulations on its smartphone business. Huawei is known for launching the latest Mate series of premium grade smartphone in the second half of the year. That period is usually packed with notable launches such as Apple’s latest iPhone series, Samsung’s newest Galaxy series and lots more.
We do not know the fate of Huawei this year yet. According to sources, the company has requested production halts for some of the upcoming Huawei Mate 40 series components. It is also said that the Chinese firm has trimmed down its orders for certain smartphone parts in the next quarter.
Huawei smartphones mostly come equipped with the Kirin processor from HiSilicon. Though the company designs its chips, the chips are produced by TSMC. Thus, losing its leading chip supplier has made the company resort to investing in local semiconductor firms and looking for better alternatives.
According to a source, the mass production of the Mate series will be postponed for at least one to two months. Huawei is reviewing its stock of existing chips and also resolving issues with its supply chain.
