The effects of the ban begin to be felt: according to DigiTimes, a source usually well informed on the vicissitudes of the Chinese supply chain, Huawei would have started reducing orders for ODM devices, or devices designed and manufactured by third-party companies to be sold on the market under their own brand.
The impossibility of having commercial relations with American companies weighs heavily – and not a little -, a situation that has recently become even more dramatic after the expiry of the temporary general license (TGL) which, until mid-August, had allowed the Chinese company to continue working with overseas companies to ensure software support for products already on the market.
TSMC will no longer accept orders from Huawei, it is a matter of a few days (from September 15), and there is a real risk that the US government will not accept the request made by MediaTek to continue supplying processors to Ren Zhengfei's company. "Last chance", we defined it, and without exaggeration: with TSMC now inaccessible, that of MediaTek represents the only way to avoid a stop to production. As already stated on several occasions, the alternative that would allow Huawei to be completely independent by US suppliers would be the design and implementation of proprietary solutions, which would however require the construction of a supply chain from scratch. Not impossible, but certainly not immediate.
Huawei is thus forced to self-scale precisely when it is the world leader in the smartphone market: even the economic crisis due to the pandemic has been overcome by containing losses (-6.8%), a result that however takes particular account of the excellent performance at home (the market share is close to 50%) which is offsetting the inevitable contraction on Western markets.