Why new U.S. rules on selling chips to Huawei could be a ‘big blow’ for the Chinese tech giant

For its smartphones, Huawei has a series of processors under the brand name Kirin which goes into almost all of its smartphone models. The problem for Huawei is its huge reliance on TSMC with over 98% of smartphone-related chips manufactured by the Taiwanese firm, according to an estimate by Counterpoint Research.

On top of that, “TSMC is miles ahead of SMIC in terms of leading edge technology prowess, capacity and scale,” according to Neil Shah, research director at Counterpoint Research, who added the new U.S. rules could be a “big blow” for Huawei.

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