Japanese Semiconductor Company to Stop Supplying to Huawei Over US Ban

According to a report on Reuters, Tokyo Electron – the world’s third largest supplier of semiconductor manufacturing technology, has announced that it will stop supplying to Chinese companies that the US government has blacklisted. This announcement spells further trouble for Huawei, which has recently been added to the trade blacklist over alleged threat to national security.

The move came on the back of the tariff war that the US and China have been embroiled in since the past year, but the US government insists that banning Huawei was a decision independent of the trade war situation. The US government has alleged that the Chinese government uses Huawei’s technology to spy on individuals and businesses located outside China.

According to an executive at Tokyo Electron, ““We would not do businesses with Chinese clients with whom Applied Materials and Lam Research are barred from doing businesses.” These two companies are among the world leaders in chip equipment and are based in the US. There are also reports that another Japanese company, Fuijan Jinhua, is likely to follow suit, but the company has not yet confirmed these rumors.

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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