I disagree not developing a semiconductor fabrication is Huaweis fault. They are a telecommunications company not a chip company, yet compared to Xiaomi or Oppo or the other multitude of phone companies in China they have come the furthest in designing chips. Does anyone really expect one company alone to design, manufacture chips, as well as make phones, software and telecom equipment? Thats like combining Qualcomm, TSMC, Cisco, Apple, google together. It's impossible.
A lot of people are at fault here.
1) The government: For having Blind belief in globalization, the US and not seriously investing in a chip fab industry until it is too late.
2) Xiaomi, Oppo, etx: Not even bothering to design their own chips, and blindly relying on Qualcomm and google Android. No demand for domestic chips means that the industry never even have chance to take off.
3) Fabs like SMIC: Relying on US equipment, never giving an opportunity to domestic equipment makers a chance.
There are so many people at fault here. Yes maybe Huawei could have done more, but one company cannot do everything.
It's like the people who worship western countries and will never drive a Chinese car or own a Chinese phone or wear a Chinese brand. Combined with a false sense of belief in globalization is why we are in this predicament.