The ban received by Huawei from the U.S. government has had dramatic consequences, and the new ones will be felt soon. According to a recent press release offered by the CEO of the Consumer Business Unit, the company will lose its ability to research, develop, and manufacture Kirin chipsets from September 15.
As the diplomatic relationships between the U.S. and China continue to deteriorate at a fast pace, the former continues to put pressure on other countries to ban Huawei, arguing that it offers private data to the Chinese government.
A surprising move
In what many would call an unexpected move, Qualcomm has petitioned the U.S. government for the right to become a chipset provider for the massive giant. The major argument behind this petition is quite impressive, as it would result in additional revenue of up to $8 billion per year.
Qualcomm argues that the revenue amount mentioned above is currently going to Chinese firms, which helps them to become better competitors against the same U.S. companies that the government tries to protect by imposing the sanctions in the first place. An escalation of the sanction in September could be even more detrimental for U.S. companies.
More than chipsets
The petition elaborated by Qualcomm mentions that the tech giant should be granted the ability to sell its SOCs (system-on-a-chip) design to Huawei and also provide the 5G chipsets that will be used for the wide-scale implementation of the high-speed standard.
Since the brunt of the sanctions are aimed at the fact that Huawei is the most popular provider of networking equipment in the world, the ability to use safe components manufactured by an American company would ease some of the suspicions, and facilitate the spread of 5G support at a faster pace.
Some believe that Huawei would be more than pleased with such a deal since it would allow the company to continue to offer competitive products.
Willie Hahn, senior editor at The Trending Times, writes about the intersection between money and politics with a focus on lobbying and tech articles. Willie previously at the Android Authority and Vice. Willie can be reached by email.