Huawei exec on latest US sanctions: 'Survival is the keyword for us now'

Vendor anticipates a fight after US government imposes new semiconductor restrictions

Huawei is fighting for its own survival, according to its rotating chairman Guo Ping, after the US government moved to cut the company off from its semiconductor supply chain.

The US government last week imposed new sanctions requiring chipmakers to obtain a licence if they want to sell semiconductors to foreign manufacturers.

The sanctions will provide a huge blow to Huawei, which relies on semiconductors for many of its products including smartphones and 5G networks.

Huawei relies on Taiwanese company TSMC for around 98 per cent of the semiconductors used in its smartphones. TSMC uses US-made equipment to manufacture its chips, and will be among the worst affected by the US sanctions.

Speaking at Huawei's annual analyst conference today, the Financial Times quoted Guo Ping claiming that the US sanctions have put Huawei in a fight for survival.

"We will now work hard to figure out how to survive," he said. "Survival is the keyword for us now."

Meanwhile a statement by Huawei criticised the US government's move.

We expect that our business will inevitably be affected," said Huawei. "We will try all we can to seek a solution."

"In its relentless pursuit to tighten its stranglehold on our company, the US government has decided to proceed and completely ignore the concerns of many companies and industry associations," the official statement reads.

"This decision was arbitrary and pernicious, and threatens to undermine the entire industry worldwide. This new rule will impact the expansion, maintenance, and continuous operations of networks worth hundreds of billions of dollars that we have rolled out in more than 170 countries."

Nikkei today reported that TSMC has already stopped new orders from Huawei after the new sanctions came into place.