Chinese manufacturing giant, Huawei, is still at loggerheads with the U.S. government over multiple issues. Recently, there were reports that the UK will expunge Huawei from its 5G construction. However, a recent report claims that it is not a straight forward decision. Yesterday, a spokesman for British Prime Minister, Boris Johnson, stated that the first step in any decision on Huawei is to deal with the US government sanctions on Huawei. As a result, the British National Cyber Security Centre (NCSC) has to complete the assessment.
“We really want to diversify the market,” the spokesperson told reporters. “The first thing we need to do is to let NCSC complete its work on the impact of US sanctions, and this work is in progress”.
Earlier, the Times reported that the British Prime Minister Johnson is considering various options to increase investment in indigenous telecommunications companies. This will help them enhance their competitiveness in the 5G market. The report said that this option is part of a larger UK plan to reduce Britain’s dependence on Huawei’s 5G technology.
However, there are reports that the UK’s recent decision is as a result of pressure from the U.S. The White House is actively lobbying the UK’s hierarchy to reconsider the decision to use Huawei 5G technology. In addition, on Monday, the Financial Times also reported that the United Kingdom is evaluating the possible impact of the US sanctions on Huawei. The British reassessment may pave the way for the government to change its previous decision.
The emergency assessment commenced after the U.S. announced new export restrictions on Huawei last month. On January 28, Johnson announced that the BT network will continue to use Huawei 5G technology. Huawei can participate in the construction of the non-sensitive parts of the UK network. However, its market share limit of 35%.
Huawei remains strong – looking for alternatives
Huawei is fighting multiple battles and it is only a matter of time before it knows how far it can handle it. The company is still looking for an alternative to its Kirin chips. Of course, the latest U.S. ban affects TSMC which produces Huawei Kirin chips. It is already in contact with Taiwanese chipmaker MediaTek as well as other Chinese foundries. There are reports that Huawei’s orders with MediaTek surged 300% because of the recent ban. From speculations, the Chinese manufacturer has a huge stock of chips for its flagship lineup. This stock would last the company for the next two years. Nevertheless, it needs new and better chips for its mid-range and entry-level devices.