Huawei relies on Taiwanese company TSMC for around 98 percent of the semiconductors used in its smartphones. TSMC uses US-made equipment to manufacture its chips, and will be among the worst affected by the US sanctions.
Speaking at Huawei’s annual analyst conference today, the Financial Times quoted Guo Ping claiming that the US sanctions have put Huawei in a fight for survival.
“We will now work hard to figure out how to survive. Survival is the keyword for us now. We expect that our business will inevitably be affected. We will try all we can to seek a solution.”
In an official statement the company said: “In its relentless pursuit to tighten its stranglehold on our company, the US government has decided to proceed and completely ignore the concerns of many companies and industry associations.
“This decision was arbitrary and pernicious, and threatens to undermine the entire industry worldwide. This new rule will impact the expansion, maintenance, and continuous operations of networks worth hundreds of billions of dollars that we have rolled out in more than 170 countries.”