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The financial magazine Caixin said on Saturday that as the United States puts increasing pressure on Chinese technology giants, Huawei Technologies will stop production of its chipset next month.

The US pressure on Huawei’s suppliers prevents the company’s HiSilicon chip division from continuing to produce the chipset, a key component of the mobile phone. According to Richard Yu, CEO of Huawei’s Consumer Business Unit, the company’s The company’s new partner At the conference, Info 100 launched 40 handhelds. A report by the Chinese publication IT Home quoted Yu as saying that Huawei Mate 40 will still be equipped with the flagship Kirin SoC.

Given that Sino-US relations are in their worst period in decades, Washington is urging governments around the world to drive Huawei out of the , saying it will hand over data to the Chinese government for espionage. Huawei denies that it is spying for China.

The United States also tried to extradite Huawei’s chief financial officer Meng Wanzhou from Canada to accuse it of bank fraud.

In May, the US Department of Commerce issued an order requiring software and manufacturing equipment suppliers not to conduct business with Huawei without obtaining a license.

Cai Xin said: “From September 15th, we will not be able to produce our flagship Kirin processor.” “Our artificial intelligence chip can’t handle it either. This is a huge loss for us.”

Huawei’s HiSilicon division relies on software from American such as Cadence Design Systems Inc or Synopsys to design its , and outsources production to Taiwan Semiconductor Manufacturing Company (TSMC), which uses equipment from American .

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Huawei declined to comment on the Caixin report. TSMC, Cadence and Synopsys did not immediately respond to email requests for comment.

HiSilicon produces a variety of chips including its Kirin processor series. processors only support Huawei’s smartphones and are the only Chinese processors that can rival Qualcomm in quality.

Quoting Yu Zhenhua as saying: “Huawei began to explore the chip field 10 years ago, from a huge backwardness, to a slight backwardness, then to catch up, and then to lead.” “We invested a lot of resources for research and development, and experienced a difficult process.”

© Thomson Reuters 2020