President Trump turns Huawei smartphones into rare goods (Part 1)

In the launch on October 22, Huawei introduced 4 high-end smartphone versions Mate 40. However, under the pressure of the Trump administration, the future of this flagship is being left open.

On October 22, Huawei technology giant has just released its flagship model Mate 40, the high-end smartphone that will succeed the Mate 30’s position. During the launch event, Huawei’s Mate 40 series launched four main versions: Mate 40, 40 Pro, 40+ and 40 RS with prices ranging around 1,500 USD.

However, under the pressure of the administration of US President Donald Trump, it is possible that the Mate 40 will become a “limited” phone model of Huawei.

Since the Trump administration issued a dual ban targeting the company’s semiconductor chip business, the Mate 40 was the first new phone to be launched by Huawei. However, according to the New York Times, Huawei has not been able to determine where the future of this flagship model will go.

As long as one of the components of the phone has been depleted, the shipments of Mate 40 will be immediately suspended.

“We’re in a tough time,” said Richard Yu, head of Huawei’s consumer business, briefly about the company’s performance.

So far, the administration of President Donald Trump has remained steadfast with its decisions. For US officials, whose position is on the line between business and the Chinese government, it is difficult to trust Huawei when it participates in the world information infrastructure. Facing pressure, the company repeatedly denied the allegations related to national security issues.

Huawei managed to get rid of business restriction orders on its own. In 2019, after the Commerce Department restricted transactions between the company and suppliers using US technology, Huawei turned to HiSilicon, its self-developed chip unit.

Although HiSilicon is fully active in the semiconductor chip design process, Huawei’s subsidiary still has to rely on TSMC, the world’s leading semiconductor processing unit, for production. That is why in 2020, the US Commerce Department blocked Huawei’s ability to cooperate with TSMC, a huge blow to the company’s semiconductor chip segment.

“Although the semiconductor industry is global, its core technology is still heavily dependent on the US,” said Geoff Blaber, vice president of research firm CCS Insight. According to Mr. Blaber, US technology is present everywhere in the world of semiconductors.