CHINA-TECH: HUAWEI IS SHORT ON SUPPLY OF CUSTOM-MADE CHIPS FOLLOWING US SANCTIONS
Caixin (June 4) reported that Huawei Technologies Co. Ltd., which has long been stocking up on custom-made chips as a hedge against U.S. sanctions, should have enough to last at least until the end of the year. But its impressive supplies could quickly become outdated amid the escalating 5G technological arms race. It cited analysts as saying the company faces enormous uncertainty after it uses up these reserves. Even if the company can find third-party replacements, such products are likely to be inferior to the ones it designs and contracts other companies to make. Huawei’s stockpiling strategy isn’t widely used in the fast-moving technology sector where the latest gadgets can be out of date within months.
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