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Huawei has enough chips to serve enterprise clients

By Zhou Mo | chinadaily.com.cn | Updated: 2021-03-31 21:14
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Consumers experience new 5G handsets at a Huawei specialty store in Shanghai on Nov 28, 2020. Still struggling with the shortage of key 5G components, Huawei is striving to increase sales of its products other than smartphones. [Photo by CHEN YUYU/FOR CHINA DAILY]

Huawei Technologies Co said on Wednesday that it has the ability to satisfy the needs of its customers, especially various enterprises, as the company has poured a large amount of cash over the past two years to build up its stockpiles of chips in response to US government restrictions and sanctions.

Hu Houkun, rotating chairman of Huawei, said the US government's restrictions on Huawei's access to its technology is not only taking a toll on Huawei's business, but also causing damage to players in the whole supply chain.

"From the perspective of the semiconductor industry, both upstream and downstream players in the industry are victims of the disruption," he said.

Huawei purchases about $10 to 20 billion worth of products from US suppliers each year, Hu said. "The disruption is damaging for US companies. And not only is the situation damaging to those upstream players, consumers in the downstream are also paying the price."

"If a political decision is damaging different players in the whole supply chain, shouldn't it be corrected in time?" Hu asked.

"As for when the supply of crucial chips can be resumed, it will depend on the global semiconductor supply chain's cooperation and improvements," the senior executive added.

As accelerating digitalization around the world is expected to push for more demand for chips in various industries, Hu said a rethinking of the semiconductor supply chain globalization should be made to promote its long-term development.

Despite the decline in overseas business in 2020 amid the COVID-19 pandemic, Hu is positive about this year's performance.

"Once the pandemic gets under control, we expect global demand will return to the uptrend territory. We have positive expectations for our revenue outside the Chinese market this year," he said.

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