Huawei in crisis. (Photo: Astudio / Shutterstock)
Because of the recently tightened US sanctions Huawei apparently the employees of his chip division Hisilicon in droves. Huawei had previously poached them itself, sometimes at high costs.
Which have tightened again and again in recent months US government sanctions against Huawei are now apparently having an effect. After the Chinese manufacturer was initially able to report good figures, it is now running out of chipsets for high-end smartphones, among other things. Reason: The Taiwanese contract manufacturer TSMC has stopped deliveries to Huawei under pressure from the USA. Alternative providers such as Mediatek could also be forced to break off trading relationships with Huawei. This also has a negative impact on the in-house chip department Hisilicon.
Headhunters “hunt” Hisilicon employees
The Taiwanese branch of Huawei Chipschmiede in particular is currently suffering from a strong emigration of employees, such as the industry portal Digitimes reported with reference to industry circles. The migration had already started earlier this year when the US began to tighten the thumbscrews for the Chinese tech company. In the meantime, the competition is said to be targeting Hisilicon employees specifically and employing appropriate headhunters.
This is doubly bad news for Huawei. After all, the Chinese company once lured the chip experts away from the competition for a lot of money. According to Digitimes, employees from both the middle and the upper floors have now left Huawei’s chip division – they apparently see little prospect of improvement. As long as the US maintains its sanctions, Huawei should have little chance of maintaining its chip business. According to Richard Yu, who is responsible for end customer business at Huawei, the high-end Kirin chip will be available from September 15 can no longer be produced.
Huawei: US sanctions also hit Qualcomm
The massive problems caused primarily by the US sanctions are meanwhile causing upheavals in the entire industry. Suppliers are currently struggling with major failures because Huawei orders are no longer available. Even the US chip giant Qualcomm is feeling this development painfully and is demanding an end to the embargo from the US government. The losses resulting from the elimination of Huawei as a customer are said to amount to eight billion US dollars at Qualcomm alone. In the smartphone market, the competition from China in particular should benefit, like Winfuture writes.
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