The U.S. Commerce Department added Huawei and 70 of its affiliates to a trade blacklist yesterday, and the Chinese company-owned HiSilicon subsidiary was expecting the move. The chip division of Huawei said it has been prepared for the “extreme scenario” where it wouldn’t be allowed to purchase U.S. chips and technology.
As a result, HiSilicon is able to continue offering a steady supply, according to a Reuters report. The information was reportedly obtained from a letter to its staff, allegedly written by President He Tingbo, and later confirmed by Huawei.
HiSilicon has been secretly developing back-up products for years in anticipation of the unlikely scenario that Huawei may one day be unable to obtain advanced chips and technology from the United States — Reuters
He Tingbo also said that it was time for “all the spare tires in the safe” to become useful, as the Chinese tech giant not only continues to battle these decisions, but it is doing so by showing growth numbers in all aspects of its business.
Reuters also reports that a Huawei spokesperson, without giving out specifics, said that HiSilicon will supply substitute products for banned American components, wherever possible.