US Temporary License Expires: Huawei's Smartphone Production is Now Limited to Stocks

 The US temporary trade license for Huawei expires as of today. Huawei will be limited to its stocks in smartphone production from today.

For Chinese smartphone maker Huawei, today could be the beginning of the end. The license period of Huawei, which gave an extended temporary license after the USA's commercial blacklist last year, has expired as of today.

After the temporary trade license expires, Huawei; TSMC will not be able to supply parts from Qualcomm, Samsung, Micron and SK Hynix. In order for Huawei to be able to reproduce products from any of these suppliers, the US will have to issue a temporary license for the Chinese company again, which seems unlikely anytime soon.

Huawei has been unable to use Google Services on its smartphones for about a year, but Android's being an open source operating system made it possible for Huawei to launch its own app store and mobile services using Android. However, when it comes to hardware, things are not that easy (!).

Although Huawei has its own brand of HiSilicon processors, these processors were manufactured by TSMC, and the company's inability to do business with TSMC will seriously affect processor production. In addition, Huawei supplied its memory chips from companies such as Samsung and SK Hynix. In addition, Huawei was supplying OLED displays from LG and Samsung for high-end smartphones.

The inability of Huawei to supply new parts means the production of smartphones has stopped, which is starting to show itself in the Chinese smartphone market. The fact that there is a supply problem with Huawei smartphones has caused the prices of second-hand Huawei smartphones to increase.