Huawei reportedly partners with European chipmaker

It looks like Huawei is seeking to diversify its supply chains beyond US influence by partnering with Franco-Italian STMicroelectronics.

The report comes from Nikkei Asian Review, but we’re too tight to subscribe, so we can only bring you the top-line claim. Reading between the lines, if the report is accurate, this would appear to indicate a move by Huawei to redirect its supply chain away from US companies. It seems like a matter of time before the US government bans all its companies from doing business with Huawei.

One strong indicator that the story has substance is the fact that it was re-reported by Chinese paper the Global Times. While it isn’t the official mouthpiece of the Chinese Communist Party, it didn’t get where it is today by rubbing the CCP up the wrong way, so it seems safe to assume the report has the official seal of approval.

The Global Times report quotes a Chinese analyst as saying what a great move this is for all concerned and that it also indicates a strategic move into the automotive sector by Huawei. ST is a supplier to US car company Tesla, so it will be interesting to see if the US tries to push its luck by extending sanctions to anyone who even works with US companies. The European Union might have something to say about that.