Huawei may return to the 5G market thanks to a loophole

Huawei was one of the biggest threats to Samsung… until it was banned from the US. Now, the company is in a tough spot, as it can’t properly produce 5G phones without help from the US. However, Huawei might have a chance to return to the 5G market with the help of a loophole. However, it’s still an uphill battle.

Back in 2020, the former US president banned Huawei from selling its phones in the United States over fears of the company spying on US citizens. Not only that, but this restricted US-based company Qualcomm from supplying its chips to the company, which means that it can’t use the company’s 5G modems.

So, Huawei is basically blocked from providing any 5G phones, and that’s a major bummer, as much of the smartphone market has adopted 5G as the standard. The company is stuck providing its users with 4G phones. As you can imagine, this had a massive negative effect on its sales.

The company, at its peak (2019) raked in about 483 Chinese Yuan (about $67 billion) and moved more than 240 million units. However, a year later, it brought in about half of the profit of the previous year.

Huawei could return to The States through a loophole

While Huawei was severely hindered by the US sanctions, the company is still looking to pull itself out of its hole. Three separate sources informed Reuters of the company’s plans.

Huawei might be able to score 5G chips in its home country by partnering with a chipmaking company called Semiconductor Manufacturing International Co (SMIC). The report states that Huawei will use “its own advances in semiconductor design tools”, so it seems that SMIC could use Huawei’s design and produce the chips.

This means that the company won’t have to rely on 4G technology or get back in good with The States. It will be able to provide its own 5G chips for its phones.

The timetable for this venture seems pretty optimistic, as the company is planning its heroic return to the 5G market by the end of the year. If this goes off without a hitch, then it will be a long road to returning to its former prime.