In May this year, the Bureau of Industry and Security (BIS) officially announced that it would strictly restrict Huawei’s use of US technology, software design, and manufacturing of semiconductor chips to protect US national security. This move will completely cut off the supply chain of Huawei’s self-developed chips, which will hurt most of Huawei’s business.
However, there is a 120-day “buffer period” before the ban is officially implemented, so the impact of the second round of US sanctions has not been fully reflected in Huawei’s first-half financial report.
Huawei released its operating results for the first half of 2020 on July 13. In the first half of 2020, the company achieved sales revenue of RMB 454 billion, a year-on-year increase of 13.1% and a net profit margin of 9.2%. Among them, the operator’s business income is 159.6 billion yuan, the enterprise business income is 36.3 billion yuan, and the consumer business income is 255.8 billion yuan.
Although Huawei achieved good results in the first half of the year, as the second US ban will be officially implemented in the second half of the year, Huawei will face a more severe test in the second half of the year. It is worth mentioning that, according to the previous regulations, the United States will make a specific analysis of the new ban on July 15.
Previously, Liu Deyin, chairman of TSMC, said at the press conference of the shareholders’ meeting that within 60 days from May 15th, it is still in the regulatory interpretation period, and all suppliers, including TSMC, are in contact with the U.S. Department of Commerce. At the interpretation stage of the legal provisions, it is not until July 14th that it is possible to judge whether to apply for an export license.
Many Huawei employees said that everyone is waiting for July 15 to wait for the United States to explain the ban on May 16. Most of them think that low-key waiting and not too illusory, Huawei “There is no escape route, only the road to victory.”
At present, there is news that Huawei HiSilicon’s semiconductor department will change from the Fabless model to the IDM model. At present, HiSilicon only focuses on chip design work, and chip manufacturing also needs to commission TSMC OEM. If HiSilicon turns to the IDM model, it will not only focus on chip design but also increase the self-developed chip manufacturing process.
In addition, the news also said that Huawei is doing more shortcomings, including obvious shortcomings such as the current domestic EDA tools, Huawei will consider self-built teams to solve.
