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Huawei has reportedly stored enough telecom chips to last for years

The U.S. has recently increased restrictions on Huawei’s chip suppliers, under which the company cannot purchase or print new chip designs.

According to a report from the Korean media TheElec, Huawei has gathered enough volume of semiconductor for its business-to-business operations since last year, said people related to the matter. These chips for base chips for the base stations have a longer production cycle compared to those used in smartphones.

Industry insiders believe that this move will help the company to shrink the recent U.S. sanctions to the lowest and Huawei will be able to continue its ongoing operations.

A few months ago, the U.S. prohibited Taiwan’s TSMC from doing business with Huawei. After that, it has to give up on its flagship Kirin processors and the company’s CEO recently announced that Huawei will not produce high-end chipset after September 15.

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