Renewable Energy

Huawei cuts orders to key suppliers after U.S. blacklisting - Nikkei

Credit: REUTERS/Jason Lee

China's Huawei Technologies Co Ltd [HWT.UL] 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.

Adds background

June 5 (Reuters) - China's Huawei Technologies Co Ltd HWT.UL 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) 2330.TW confirmed that orders from Huawei have declined after U.S. President Donald Trump imposed a ban on the Chinese firm on national security grounds, according to the report.

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 GOOGL.O suspended the transfer of hardware, software and technical services to Huawei while Microsoft Corp MSFT.O said it had stopped accepting new orders from the company, according to a media report.

Optical components maker Lumentum Holdings Inc LITE.O ceased all its shipments to Huawei, while U.S. chipmaker Qorvo Inc QRVO.O 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.

(Reporting by Akanksha Rana in Bengaluru; Editing by Anil D'Silva and Maju Samuel)

((akanksha.rana@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6749 1130; Reuters Messaging: akanksha.rana.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More