Huawei has a 12-month supply of critical components

Network sources report that the Chinese company Huawei managed to make purchases of key components before the US government blacklisted it. According to a recent report by the Nikkei Asian Review, the telecommunications giant told suppliers a few months ago that it wanted to build a 12-month supply of critical components. Due to this, the company hoped to mitigate the consequences of the ongoing trade war between the United States and China.

Huawei has a 12-month supply of critical components

It is reported that the preparation of stocks was started about six months ago. The deliveries included not only chips, but also passive and optical components. The source reports that stocks of major components vary from 6 to 12 months, and the amount of accumulated less important items should be enough for 3 months. In addition, the company is trying to partner with non-U.S. suppliers, which could mitigate the impact if the U.S. government ban is not addressed soon.

The report also states that Huawei previously used 1-2 major electronic component suppliers. However, this year the number of suppliers has been expanded to four. The main goal of the company at the moment is to avoid the worst-case scenario in which the vendor will not be able to continue the production of smartphones, servers and other telecommunications equipment due to the US ban.  

At this point, it's hard to say how successful Huawei's strategy will be. Despite the fact that only 30 of the 92 main partners of the Chinese giant are of American origin, many Asian companies (Sony, TSMC, Japan Display, SK Hynix) are not sure that they will be able to continue cooperation with the vendor. The thing is that the products they produce are partially or completely based on technologies related to the United States.



Source: 3dnews.ru

Add a comment