Over the weekend Huawei was greeted by some rather disconcerting news, with Google decided to restrict the Chinese company’s access to its Android operating system.
This recent action now places some doubt over what Huawei smartphone users should do, as well as how strong a fight it can put up against the United States government in their ongoing debate surrounding the security of the firm’s telecommunications hardware.
While the move from Google has caught many off guard, ourselves included, according to reports a few more of Silicon Valley’s top manufacturers appear to be following the lead of Google and seemingly picking the side of the US government.
More specifically Bloomberg reports that key players in the chipset market, namely Intel, Qualcomm and Broadcom have notified their employees that they will not supply Huawei with components or services until further notice.
While the precise reason why those three companies decided to join Google is unclear, apart from pressure from the US government of course, as Bloomberg notes, this move could have serious implications for the global chipset market.
Huawei is the largest provider of networking gear in the world, and in recent years has moved to number two among smartphone providers. As such cutting off a potential client like that could have ramifications for future dealings, with Intel already being the main supplier of server chipsets to Huawei.
Consequently the American firm is now putting itself at risk of losing millions, if not billions of future revenue due to the Trump administration’s blacklisting of Huawei.
What will happen now that Huawei has been cut off from key suppliers remains to be seen, but Bloomberg notes that the Chinese company has reportedly already stockpiled as much as three months worth of vital components in the interim.
Whether a resolution with the US, and indeed their key vendors can be broached in that time, is unclear for now.
Either way this weekend’s developments could have far-reaching implications for the tech industry, and the rollout of 5G across the globe in particular.