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Huawei can breathe a sigh of relief: New exemption granted – with restrictions

Last updated on March 9, 2021

Huawei is currently experiencing an ups and downs of emotions. Only recently, the sanctions against the Chinese company were tightened, now there is an important exemption, but it has a big catch.

Huawei gets chips again – but not for the 5G business

Samsung recently received a special permit that allows the Chinese manufacturer Huawei to buy screens from its subsidiary Samsung Display again. Now the Financial Times reports that there is a big easing. Chip manufacturers who have not been able to deliver semiconductors to Huawei since September 15 are now allowed to return if they can prove that it is not being used for 5G technology. Then there is the crux of the matter how that is assessed. Is a processor and memory for a 5G mobile phone then allowed? That will have to become apparent in the coming months.

Huawei cannot live without 5G. The Chinese company is a leader in the market and 5G phones are the future. Foregoing 5G now just to bring cell phones to market will hardly work when the competition is fully committed to 5G. 5G is a must, especially in China and other countries. So it will be exciting to see whether the restriction only affects the production of the 5G infrastructure for mobile networks – or also end devices. At least Jefferies' analyst Edison Lee assumes that the US government is not really targeting Huawei in the smartphone business, only the cellular network. Accordingly, with luck, Huawei could continue to build smartphones – just without Google.

Huawei has developed an alternative to Google Maps:

If Huawei can continue to build smartphones with 5G thanks to the new exemption, nothing will stand in the way of the plan to become independent from Google. That won't happen overnight, but in the long term independence from US corporations is a decisive factor in avoiding making yourself so vulnerable again.

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