One of the world's best-known chipmakers, Qualcomm is reportedly lobbying the U.S. government to lift restrictions on dealing with Chinese tech giant Huawei not to lose the lucrative client to foreign rivals.
The chipmaker said that the restrictions could have cost it as much as $8 billion in lost annual revenue. He said Huawei lacks the ability to make its own chips.
The San Diego-based semiconductor manufacturer also warns that the United States is shifting Huawei's cash flow from USA firms to their foreign rivals, a market Qualcomm estimates as being worth $8 billion annually.
With US-China relations at their worst in decades, Washington is pressing governments around to world to squeeze Huawei out, arguing it would hand over data to the Chinese government for spying.
The sanctions on Huawei were imposed previous year which cut off Huawei's access to U.S. components and technologies.
Chinese tech giant Huawei has recently reported that it is running out of SoCs to manufacture smartphones.
Qualcomm's campaign seeks to seize upon the Trump administration's sometimes competing policy priorities of confronting Chinese security threats while ensuring the financial health of USA companies critical to American technological competitiveness, many of whom have significant business interests in China.
Taiwan Semiconductor Manufacturing Co. "This year may be the last generation of Huawei Kirin high-end chips".
Back in May, the U.S. Commerce Department prohibited U.S. companies from becoming involved with Huawei without obtaining a license. However, he shared that this could be their final flagship chipset due to the current situation with the US. That would hamper American research and leadership on 5G issues, it said, calling that "an unacceptable outcome for US interests". However, their technology is said to be inferior.
Huawei became the world's top rated-offering smartphone model in the 3 months ending in June, passing rival Samsung for the very first time due to strong demand from customers in China, according to Canalys. Qualcomm Chief Financial Officer Akash Palkhiwala told analysts in late July that the company's business with Huawei is now negligible. In 2018, President Trump blocked a $117 billion bid for Qualcomm from Broadcom Inc., then based in Singapore, on concern that the combination would hinder the U.S.in its technological competition with China.
Trump has banned USA federal agencies from using equipment supplied by Huawei, and lobbied foreign allies to block it from their fledgling 5G networks.
According to Huawei, the USA ban would cost an 11-billion-U.S. -dollars loss to the country's suppliers annually. While Qualcomm needs a license for its flagship 5G chips, the US company has been able to continue shipping some other components to Huawei because those comply with government regulations.