How Huawei Faces A Global Chip Scarcity Crisis

Huawei illustration (Phonearena)

JAKARTA - Huawei has a way to end the current lack of global chip supply. One of them is by inviting businessmen in the semiconductor industry to collaborate together.

"To be able to restore normal business in the semiconductor industry and avoid major crisis, the key is to restore global trust and cooperation in the industry", Huawei Rotating Chairman Eric Xu said during the Huawei Global Analyst Summit 2021, Tuesday, April 13.

Huawei argues the semiconductor crisis stems from the United States sanctions against a number of Chinese companies, including Huawei. The sanctions disrupt the level of trust in the industry.

The sanctions have led manufacturers in a variety of industries, including automotive and electronic devices and mobile phones, to stockpile chip supplies, creating scarcity in the market.

Huawei itself has built up a supply of chips to try to ensure its business - which focuses on telecommunications equipment and consumer electronics - can continue to run normally.

"It has disrupted the whole system. Clearly, unwarranted U.S. sanctions against Huawei and other companies are turning into a global and industrial supply shortage", Eric Xu said.

To that end, he called on industry players and global leaders to unite to address risk and restore confidence in the semiconductor industry as soon as possible.

The semiconductor crisis was originally only felt by the auto industry, however, it is now extending to mobile phones and household electronic devices that evolved chips.