Has Huawei Cancelled Orders for Components Over US Ban?
Huawei has cancelled orders to major suppliers for components used to build its smartphones and telecom equipment
According to a report by the Nikkei, Huawei has cancelled orders to major suppliers for components used to build its smartphones and telecom equipment. The report claims that this move came on the back of US’s decision to blacklist the company, a claim which Huawei has since denied.
Meanwhile, one of its suppliers, Taiwan Semiconductor Manufacturing Co. Ltd (TSMC), has confirmed the decline in orders from Huawei. In addition, Huawei has also updated its forecast for H2 2019, expecting a 20-30% decline in total smartphone shipments as a result of the US ban.
Ever since the Trump administration announced its decision to blacklist the company, Huawei and 68 of its affiliates from over 24 countries have been added to the Commerce Department’s Entity list. Companies in this list can only buy components from US businesses that have special approval from the government.
On account of this blacklist, leading tech company Google has suspended transfer of hardware, software and technical services to Huawei. For now, however, the US government has granted a temporary reprieve to the company till August to avoid potential disruption of service.
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