How is the United States after the ban on Huawei? Yahoo: The ban hurts US chip makers

Door Batterus123 gepubliceerd op Thursday 15 August 11:10

After Huawei Technologies Co., Ltd., which was previously blacklisted, the US-China trade war intensified in May 2019. For national security reasons, the United States restricted Huawei's trade with US companies. On August 9, US President Donald Trump announced that the US government would not do business with Huawei after initially agreeing to part of the embargo, saying that he was not prepared to soon reach a trade agreement with China.

The trade restrictions on Huawei not only affected Huawei, but also hindered the income of several large and small chip manufacturers. Because Huawei is a big consumer of these chip companies, so is Intel and other giants. Intel has requested the White House to approve partial trade with Huawei.

Chip stocks plummeted

In 2018, the United States alone contributed 6.6% of Huawei's revenue. According to Huawei's annual report, this figure exceeded $10 billion. The company focuses on telecommunications networks, information technology, smart devices and cloud services. It relies on several large and medium-sized US companies to source chips and technology. In 2018, Huawei spent $11 billion to buy parts from US companies including Qualcomm. Intel and Micron Technology Co., Ltd. It is spent on the total purchase of $70 billion.

On August 9, Trump's statement caused a heavy blow to chip stocks, although some of the chip stocks rebounded before the market closed, the White House made a clarification. Advanced Micro Devices fell nearly 2%, but accounted for 1% before the bell. Micron Technology, Intel and Skyworks Solutions. Stocks closed down 2%, 2.5% and 3% respectively.

Shares of AMD, Micron, Skyworks and Qualcomm rose 75.7%, 32.8%, 13.8%, 22.7% and 15.6% respectively. Intel shares fell 2.8% over the same period. Qualcomm stock has ZackRank 5 (strong sell). However, Intel, AMD, Micron and Skyworks stock all have ZackRank 3 (hold).

Huawei's next plan?

Huawei has become the world's second-largest smartphone vendor, defeating Apple. The goal is to beat Samsung Electronics and rule the first position. On July 30, the company announced revenue growth of 23.2% in the first half of the year.

Considering trade restrictions, Huawei has planned to invest 800 million US dollars to establish a new factory in Brazil. The company has a factory in São Paulo that produces telecommunications equipment for mobile operators. The new facility will enhance the company's ability to manufacture modem chips and processors.
Taiwan Semiconductor Manufacturing Corporation (TSMC), the world's largest chip maker, has confirmed that it will continue to supply to Huawei and is not affected by the US ban. Huawei has been hoarding parts since its chief financial officer Meng Wanzhou was arrested last year. In addition, Huawei has certified non-US suppliers that will support the supply chain in the long run.

At the same time, Huawei has two new internal chips, designed by its chip division HiSilicTechnologies, called Kirin 985. The other is the world's first chip made by TSMC that uses the most advanced extreme ultraviolet light. Huawei will use its new chip from TSMC to launch its high-end smartphone Mate 30 series. The company also launched the Mate 20 series of 5G phones, which can narrow the income gap caused by the ban on sales in the US market.

Trade restrictions may not affect Huawei's revenue, but will affect sales of US chip makers. Huawei is making rapid progress in replacing its US suppliers with Asian alternatives. Murata Manufacturing in Japan and RichWave in Taiwan have already received more orders.


Replacement discount batteries and ac adapters at

Reacties (0) 

Voordat je kunt reageren moet je aangemeld zijn. Login of maak een gratis account aan.