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China’s largest telecom firm ‘Huawei’ is in a brink of collapse after US total ban

WASHINGTON: Global tech firms, including chip suppliers, are cutting ties with China’s Huawei Technologies Co Ltd after the US government put the world’s largest telecom equipment maker on a trade blacklist citing national security concerns.

The United States has effectively banned its companies from doing business with Huawei, exacerbating an ongoing Sino-US trade war. The ban applies to goods that have 25 per cent or more of US-originated technology or materials, and may therefore affect non-American firms.

Huawei is allowed to buy US goods until Aug 19 to maintain existing telecoms networks and provide software updates to its smartphones.




Following are companies that have suspended business with the Chinese firm:

ALPHABET INC: Google on May 19 suspended the transfer of hardware, software and technical services to Huawei, except what it has made publicly available via open source licensing.

US CHIPMAKERS: Intel Corp, Qualcomm Inc , Xilinx Inc and Broadcom Inc told their employees they will not supply critical software or components to Huawei until further notice, Bloomberg reported on May 19.

LUMENTUM HOLDINGS INC: The optical components maker said on May 20 it discontinued all shipments to Huawei, adding it “intends to fully comply with US imposed license requirements”. Huawei represented 18 per cent of the company’s total revenue in the latest quarter.

QORVO INC: The radio frequency chipmaker said on May 21 it expects first-quarter revenue to take a US$50 million hit due to a halt in shipments to Huawei. The Chinese firm represented 15 per cent of Qorvo’s total revenue in the year ended Mar 30.

ANALOG DEVICES INC: Chief Executive Officer Vincent Roche on May 22 said his company will not be shipping anything to Huawei for the foreseeable future.




INPHI CORP: The optical communications chipmaker on May 22 lowered its second-quarter earnings forecast based on its understanding of the US government blacklisting of Huawei, which accounted for 14 per cent of Inphi’s sales in 2018.

ARM: The British chip designer, owned by Japan’s SoftBank Group Corp, said on May 22 it has halted relations with Huawei to comply with the US ban.

PANASONIC CORP: The Japanese electronics giant said on May 23 it had stopped shipments of certain components to Huawei. It will still sell some components to Huawei, a point it made clear on its China website.