Huawei 's house of cards is collapsing at breakneck speed. The pressure the US government is exerting on all companies in the country is taking its toll, and Huawei is watching key companies for the development and manufacturing of its devices disappear overnight.
Huawei is left without the design of its processors
After setbacks such as the departure of Google, Intel, and Qualcomm , it seemed that the company had more or less planned an escape route with its own operating system in reserve and its own processors; however, it seems that the latter option could be ruled out after the latest announcement.
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ARM , responsible for the design and architecture planning of many chips on the market, has announced that it has canceled all pending contracts, collaborations, and commitments with Huawei due to the US ban. What's surprising is that ARM is a UK-based company owned by the Japanese SoftBank Group; however, the company maintains that many of its designs incorporate US-origin technology, and therefore believes that ignoring the US ban could seriously harm them.
The question is whether ARM has truly made this decision on its own or has received some recommendation from high places.
No operating system and now no processors
Until now, Huawei was responsible for purchasing the necessary licenses to use ARM designs in its Kirin processors , something that will no longer be possible. With this change, Huawei is left without designs, making it unable to produce its own processors, which would completely cripple its mobile device division.
According to statements made by the company itself to The Verge , they regret the political pressures that many companies around the world are facing.
We value our close relationships with our partners, but we recognize the pressure some of them are under as a result of politically motivated decisions. We are confident that this unfortunate situation can be resolved, and our priority remains to continue to provide world-class technology and products to our customers around the world.
The situation is critical in the Chinese company, so we'll see what strategy they decide to implement. Without an operating system there was hope, but without processors, things get even more complicated. Worst? The confidence of the users is on the ground.
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