Huawei blames US for chip shortage, eyes cooperation with S. Korea, Japan, Europe

Chinese telecom equipment giant Huawei Technologies Co. blamed the US for a global chip shortage that stalled production across manufacturing industries and called for cooperation with South Korea, Japan, and Europe to form a new semiconductor supply chain.

The auto industry was especially affected by the chip shortage.

According to Karl Song, Huawei's vice president of corporate communications, the shortage is due to the sanctions Huawei faces and its impact on the companies that the company cooperates with. He called for the lifting of US sanctions.

Eric Xu, Huawei's rotating chairman, claimed that US sanctions against them created supply uncertainties that hurt the semiconductor industry.

Currently, Huawei is cut off from semiconductors made with US equipment, software, and designs due to the US sanctions over national security concerns.

The US has long alleged that Huawei's equipment is used to spy on foreign networks.

Huawei plans to further collaborate with South Korean companies, noting that its purchases from South Korea over the past five years were worth US$37 billion.

LG Uplus Corp., a major South Korean mobile carrier, uses Huawei equipment for its 5G network.

US President Joe Biden had urged more spending in the chipmaking sector to resolve the chip shortage and build up a stable supply chain in a meeting with the top executive officers of 19 global firms to discuss ways to address the ongoing semiconductor shortage.