Thursday, 29 Oct, 4.23 pm smartpix

US permits the sale of chips to Huawei for non-5G business: Report

A sliver of hope for Huawei as the US administration has reportedly allowed a number of American chip manufacturers to sell silicon to the Chinese giant. But the catch is that the company should not use the components for its 5G business.

The US Dept. of Commerce has been telling local chipmakers "that while licenses to supply Huawei are handled with a view to denial, this can be overcome if you can demonstrate that your technology does not support 5G," reports FT quoting an anonymous chipmaker.

Huawei has been grasping by straws ever since the US trade ban strangled its ties with core business partners like Qualcomm, TSMC, and Google, among many others. As such company had said its latest release ie., Mate 40 series could very well be the last of its flagship offering.

But, now it seems things could possibly turn a corner. Two Asian semiconductor firms have already shared the prospects of doing business with Huawei if their licenses get approved. Even Qualcomm has its license pending with the D.O.C.

Last month, Guo Ping, rotating chairman at Huawei, said, "I've noticed Qualcomm has applied for a license to export products to Huawei from the U.S. government and if they get the license we are willing to continue to procure from them and use their chipsets in our smartphones".

Even Samsung was allegedly allowed to sell its OLED displays to Huawei earlier this week. Now, although, Huawei depends on BOE for its screens, the Samsung panels could add to the phones' actual and perceived quality. And even Huawei is able to reverse the course, it will still need robust software to complete the smartphone experience. There have been rumors of Hongmeng OS replacing Android inside its phones starting next year. But, only time will tell, how it all materializes.

Disclaimer: This story is auto-aggregated by a computer program and has not been created or edited by Dailyhunt. Publisher: Smartpix English