Huawei has a 12-month supply of critical components
Network sources report that the Chinese company Huawei managed to purchase key components before the us government has made it to the black list. According to a recent Nikkei Asian Review report, the telecommunications giant told suppliers a few months ago that it wanted to create a 12-month supply of critical components. Due to this, the company expected to mitigate the consequences of the ongoing trade war between the US and China.
It is reported that the preparation of stocks began about six months ago. Not only chips, but also passive and optical components were included. The source reports that stocks of basic components vary from 6 to 12 months, and the volume of accumulated less important elements should be enough for 3 months. In addition, the company is trying to establish partnerships with suppliers not from the US, which can mitigate the consequences if the issue of the ban by the us government is not resolved in the near future.
The report also says that earlier Huawei used 1-2 major suppliers of electronic components. However, this year the number of suppliers has been expanded to four. The main goal of the company at the moment is to prevent the worst-case scenario in which the vendor will not be able to continue the production of smartphones, servers and other telecommunications equipment due to the us ban.
At the moment, it's hard to say how successful Huawei's strategy will be. Despite the fact that only 30 of the 92 main partners of the Chinese giant are of American origin, many Asian companies (Sony, TSMC, Japan Display, SK Hynix) are not sure that they will be able to continue cooperation with the vendor. The thing is that their products are partially or completely based on technologies related to the United States.
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