.China’s Huawei Technologies Co Ltd has cut or canceled orders to major suppliers for components that go into its smartphones and telecom equipment following its U.S. blacklisting, the Nikkei reported on Wednesday, citing sources familiar with the matter.
Taiwan Semiconductor Manufacturing Co Ltd (TSMC) confirmed that orders from Huawei have declined after U.S. President Donald Trump imposed a ban on the Chinese firm on national security grounds.
Huawei has also downgraded its forecast for total smartphone shipments in the second half of 2019 by “about 20% to 30%” from the previous estimate, the Nikkei reported.
Both, Huawei and TSMC did not immediately respond to a request for comment.
The
Trump administration in May added Huawei to a trade blacklist. The move put
Huawei and 68 affiliates in more than two dozen countries on the Commerce
Department’s so-called Entity List, a move that bans the company from buying
parts and components from American firms without U.S. government approval.
Ever since, global tech companies have been cutting ties with the Chinese
telecom giant and complying with the U.S. ban.
Tech giants such as Alphabet Inc suspended the transfer of hardware, software
and technical services to Huawei while Microsoft Corp said it had stopped
accepting new orders from the company, according to a media report.
Optical components maker Lumentum Holdings Inc ceased all its shipments to
Huawei, while U.S. chipmaker Qorvo Inc said it expects first-quarter revenue to
take a $50 million hit due to a halt in shipments to the Chinese company.
Huawei is allowed to buy U.S. goods until Aug. 19 to maintain existing telecoms
networks and provide software updates to its smartphones.
Source: ET Telecom