US sanctions continue to spoil Huawei’s business. Details have now emerged about a previously secret start-up in China that could be used to circumvent the restrictions. A former Huawei manager is said to be at the top.

Huawei

Huawei: secret start-up for chip production

The US and some other Western countries see Huawei as a security risk. It has been an American company for a long time no longer allowed to do business with Huawei. The Chinese manufacturer should also not play a major role in the construction of the 5G networks in Germany.

Huawei still manufactures smartphones with the latest processors, but has to do without 5G functions, as was the case recently with the flagship Mate 50 Pro. According to new reports, in order to remain competitive heavily involved in a start-up in Shenzhen. It is even said to be headed by a former Huawei executive.

It is not just a coincidence that the start-up, which goes by the name of “Pengxinwei IC Manufacturing”, is located very close to Huawei’s headquarters. As early as the first half of 2023, the company should help Huawei to circumvent US sanctions. Huawei is likely to be the only buyer (source: Yahoo).

The start-up aims not only to import chips, but to expand over time work your way up to a chip manufacturer. Particular attention should be paid to important EUV lithography machines from the Dutch company ASML. However, ASML itself is subject to strict conditions that actually prohibit exports to China.

Details about the Huawei Mate 50 Pro in the video:

Huawei with its back to the wall

The smartphone business is getting worse and worse for Huawei. In the home market, the share has already more than halved, instead more and more customers are using cell phones from the former subsidiary brand Honor. Meanwhile, Huawei is reorienting itself and would like to invest more in other business areas such as e-car software.