Huawei Shows Signs of Strain From U.S. Pressure on Chips



Dan Strumpf | Wall Street Journal

HONG KONG—Pressure is mounting on China’s Huawei Technologies Co., as growth slows in the face of tightening U.S. restrictions on its chip supplies and as an increasing number of countries shun its 5G gear.

The Shenzhen-based technology giant reported a slowdown in revenue growth for the first nine months of the year Friday, a day after it unveiled a new smartphone that it says could be the last to run on the advanced chips designed by its own engineers.

Huawei is nearly six weeks into a new era in which it no longer has access to the global market for computing chips, following a Trump administration ban on their export without a license. The rules have forced Huawei to draw on an inventory stockpile to build its smartphones and telecom equipment that analysts say could run out as soon as the middle of next year, barring a reprieve from Washington.

“The U.S. administration has set up a framework where they decide what Huawei can or cannot do,” said Pierre Ferragu, head of telecom infrastructure at New Street Research.

To read the full article, click here