Huawei's First Response to U.S. Sanctions... "Arbitrary and Harmful"
[Asia Economy Reporter Kim Min-young] Chinese company Huawei has issued its first official statement regarding the strengthening of U.S. sanctions.
According to Chinese media Sina Technology on the 18th, Huawei responded through a statement saying, "This not only affects Huawei as a company but could also cause serious shocks to related industries worldwide."
It added, "In the long term, the trust foundation for global cooperation in industries such as the semiconductor sector will be destroyed. Furthermore, internal conflicts and losses within the industry will worsen," strongly opposing the U.S. sanctions.
Earlier, on the 15th, the U.S. announced new sanctions requiring companies that use any U.S. semiconductor-related technology to obtain U.S. approval before manufacturing and selling semiconductor products designed and ordered by Huawei.
Huawei argued that the sanctions against them would ultimately harm U.S. interests as well. Huawei stated, "If the U.S. suppresses foreign companies by leveraging its technological superiority, the trust of foreign companies in using U.S. technology components will weaken," adding, "In the end, this will also harm U.S. interests."
Expressing concern over the impact of the sanctions, Huawei said it would make every effort to find solutions. Huawei also criticized the sanctions as "contradictory to the 'cybersecurity' principles advocated by the U.S."
AFP reported that a Huawei spokesperson described the U.S. decision as "arbitrary and harmful."
The sanctions are widely seen as a measure to effectively sever the link between Huawei and Taiwan's foundry (semiconductor contract manufacturing) company TSMC.
Since May of last year, due to U.S. government sanctions, Huawei has found it difficult to purchase semiconductor components from U.S. companies such as Qualcomm.
In response, Huawei attempted to circumvent U.S. sanctions by having its subsidiary HiSilicon design semiconductor products and entrust their production to Taiwan's TSMC.
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According to Chinese technology media Zhiweiwang, HiSilicon placed an order worth $700 million (approximately 860 billion KRW) for semiconductor products with TSMC just before the U.S. government announced additional sanctions. The media reported that this order volume is enough for Huawei to produce smartphones for one quarter.
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