The next "ZTE"? US Department of Justice is investigating whether Huawei violates sanctions

[Next "ZTE"? The U.S. Department of Justice is investigating whether Huawei violated sanctions on April 26, according to foreign media reports. Huawei encountered numerous obstacles in trying to enter the U.S. market, especially during the past few months. The company is now under investigation by the U.S. Department of Justice.

The Wall Street Journal reported that the U.S. Department of Justice is investigating whether Huawei has violated U.S. sanctions against Iran. This move may result in criminal charges against Huawei executives and a fatal blow to the company’s ambitions in the United States and Europe.

The details surrounding this investigation are not yet clear. However, if Huawei violates these sanctions, it may pay a high price.

After the news came out, U.S. semiconductor company shares fell sharply, Inphi fell 11.81%, NeoPhotonics fell 6.7%, the United States well-known chip makers Nvidia, AMD, Qualcomm and other stock prices fell in full, which also continued the US technology stocks recently collectively collapsed Possibility.

The situation is not objective

Not long ago, ZTE also faced a similar situation and was fined more than one billion US dollars. ZTE has been hit by an export ban that will prevent ZTE from using any American-made technology on its equipment.

The U.S. Department of Justice’s investigation into Huawei remains to be seen, but at present, the situation is not optimistic.

Under pressure from the U.S. government, Best Buy, one of Huawei's largest partners, decided to stop selling its products. If this investigation reveals any misconduct, the situation may get worse.

This is not the first time that Huawei has been accused of defying US sanctions. The U.S. Department of Commerce and the Ministry of Finance had asked Huawei to provide information on possible violations, but the involvement of the Ministry of Justice and the criminal investigation report made the matter even more serious. The export ban imposed on ZTE is also a violation of the sanctions.

Huawei responded to this issue and issued a statement saying that Huawei complied with all applicable laws and regulatory requirements of the countries in which it operates, including the applicable United Nations, United States, and EU regulations on export controls and sanctions.

In response, Huawei's rotating chairman, Chairman Xu Zhijun, said, “Some things are not based on our will. If you can’t control them, you might as well ignore them. We will have more energy and time to serve us. Customers, have more time and energy to build better products to meet the needs of our customers. Some things, let go, but easy."

In addition, when talking about the positioning of Kirin chips in Huawei products and service systems and whether Huawei smartphones will all use Kirin chips and whether they will be exported, Xu Zhijun stated that Huawei does not position chips as an independent business and will not create chips based on external chips. income.

Xu Zhijun emphasized that Huawei's own chips are only positioned to carry its own hardware architecture to achieve product differentiation, competitiveness, and low cost. Huawei has not had any ideas and plans until now to sell Kirin chips.

In addition, he said that Huawei has always been a clear multi-chip supply strategy for smart phones. Huawei's mobile phones will not use all Kirin chips. Qualcomm, MTK and Unicorn are chip suppliers for Huawei smartphones.

The strategy of multi-chip supply will continue to be adhered to, so as to ensure the healthy development of the business of smart terminals. "Can't hang on a tree. If you hang a tree, Kirin chips fall behind. What about our smart phones?" Xu Zhijun said.

Xu Zhijun said, "The three chips are competing. Based on the positioning of different smartphones to choose the right chip solution, and then build the smart phones and experience needed for this consumer group."

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