Huawei lost $ 10 billion due to US sanctions

Actual losses were less than originally anticipated. The company is looking for an alternative to American suppliers.

Chinese company Huawei Technologies Co. expects that the impact of US trade restrictions on its business will be less than originally expected, but the company is looking for ways to replace key US suppliers.

This is with reference to the vice chairman of Huawei Eric Xu Bloomberg reports on Friday, August 23.

Washington’s US technology export restrictions will cut about $ 10 billion in annual revenue from Huawei’s consumer device division, which includes smartphone sales, Xu said.

However, the total damage to the company will be “slightly less” than the initial assessment by Huawei founder and CEO Ren Zhengfei in June. According to his forecasts, Huawei sales in the next two years may fall by $ 30 billion.

Huawei continues to develop alternatives to US technology needed to manufacture its equipment, Xu told a news conference.

On Friday, Huawei introduced the new Ascend 910 processor, equipped with artificial intelligence technologies, which should compete with the development of Qualcomm Inc. and Nvidia Corp. Earlier this month, the company presented its own operating system (OS) for smartphones called HarmonyOS. This OS may eventually replace Android in the company’s devices in the event of tougher US sanctions.

According to Xu, Huawei is also looking for ways to replace the chip design software that Cadence Design Systems Inc. offers. and Synopsys Inc.

In May, the United States put Huawei on the blacklist because, according to the American authorities, it was collecting intelligence information in favor of the Chinese government. The company has repeatedly denied these allegations. As a result, Huawei’s activity in the US market was significantly limited, despite the fact that Washington has repeatedly renewed licenses for US companies to conduct business with Huawei for a period of 90 days. This week, the license has been extended until November 19.

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