Opinion | Could Huawei founder Ren Zhengfei give up on 5G to keep the company alive?
- Huawei’s short term strategy has been to stockpile chips from its key silicon supplier TSMC
- The company’s carrier business, which includes 5G, is about one third of total company revenue
“My biggest wish is to drink coffee in a cafe unnoticed,” said the 75 year old.
But standing between Ren and those anonymous visits to coffee shops is probably the biggest decision of his career.
In May, the Trump Administration announced a new direct product rule (DPR) that effectively blocks Huawei's access to advanced semiconductors – the brains inside all of its products. While Huawei was able to survive Washington’s first attempt to deny it access to US core tech in May last year, this time it has no wriggle room left.
Huawei’s short term strategy has been to take advantage of a two month grace period to stockpile chips from its key silicon supplier TSMC. After September, TSMC and other companies that use US chipmaking equipment (including China’s SMIC) will need a waiver from Washington to supply Huawei.
