Money: Top U.S. Tech Companies Begin to Cut Off Vital Huawei Supplies - PressFrom - Australia
  •   
  •   

MoneyTop U.S. Tech Companies Begin to Cut Off Vital Huawei Supplies

07:05  20 may  2019
07:05  20 may  2019 Source:   msn.com

Trump issues order to protect US communications from foreign adversaries

Trump issues order to protect US communications from foreign adversaries The US, which is embroiled in an escalating trade war with China, has sounded warnings about Huawei’s efforts to expand into Europe. The US worries that China could use Huawei to gain access to private, commercial or other information that could compromise Nato and allied intelligence operations.

Top U . S . corporations from chipmakers to Google have frozen the supply of critical software and components to Huawei Technologies Co., complying with a Trump administration crackdown that threatens to choke off China’ s largest technology company .

China' s Huawei Technologies from buying vital American technology threw into question prospects for sales at some of the largest tech companies REUTERS/Jason Lee. Shares of Huawei ’ s U . S . suppliers fell on fears the Chinese firm would be forced to stop buying American chips, software and

Top U.S. Tech Companies Begin to Cut Off Vital Huawei Supplies© Bloomberg An attendee uses a P30 smartphone on display during a Huawei Technologies Co. launch event in Paris, France, on Tuesday, March 26, 2019.

(Bloomberg) -- Top U.S. corporations from chipmakers to Google have frozen the supply of critical software and components to Huawei Technologies Co., complying with a Trump administration crackdown that threatens to choke off China’s largest technology company.

Chipmakers including Intel Corp., Qualcomm Inc., Xilinx Inc. and Broadcom Inc. have told their employees they will not supply Huawei till further notice, according to people familiar with their actions. And Alphabet Inc.’s Google cut off the supply of hardware and some software services to the Chinese giant, another person familiar said, asking not to be identified discussing private matters.

Top U.S. Tech Companies Begin to Cut Off Vital Huawei Supplies

Top U.S. Tech Companies Begin to Cut Off Vital Huawei Supplies Top U.S. corporations from chipmakers to Google have frozen the supply of critical software and components to Huawei Technologies Co., complying with a Trump administration crackdown that threatens to choke off China’s largest technology company. Chipmakers including Intel Corp., Qualcomm Inc., Xilinx Inc. and Broadcom Inc. have told their employees they will not supply Huawei till further notice, according to people familiar with their actions. And Alphabet Inc.

They argue a move to cut off Huawei from American technology sales would further decouple U . S . firms from the global technology supply chain and If interpreted broadly, the controls on U . S . sales to Huawei could prove the biggest move yet to thwart the Chinese telecom company ' s ambitions to

China' s Huawei Technologies from buying vital American technology threw into question prospects for sales at some of the largest tech companies up a one-to-two-year supply of U . S . components, cut price targets on several microchip companies , including Xilinx Inc. Shares of Xilinx closed down

The moves, which had been anticipated, hamstring the world’s largest provider of networking gear and No. 2 smartphone vendor. The Trump administration on Friday blacklisted Huawei -- which it accuses of aiding Beijing in espionage -- and threatened to cut it off from the U.S. software and semiconductors it needs to make its products. Blocking the sale to Huawei of critical components could also disrupt the businesses of American chip giants like Micron Technology Inc. and retard the rollout of critical 5G wireless networks worldwide -- including in China. That in turn could hurt U.S. companies that are increasingly reliant on the world’s second largest economy for growth.

If fully implemented, the Trump administration action could have ripple effects across the global semiconductor industry. Intel is the main supplier of server chips to the Chinese company, Qualcomm provides it with processors and modems for many of its smartphones, Xilinx sells programmable chips used in networking and Broadcom is a supplier of switching chips, another key component in some types of networking machinery. Representatives for the chipmakers declined to comment.

Huawei expects growth to slow slightly

Huawei expects growth to slow slightly Huawei's founder Ren Zhengfei says the restrictions placed on it by the US may slow its growth "but only slightly" as it had prepared for the eventuality.

New U . S . measures that restrict exports to Huawei could cost Silicon Valley billions in lost revenue.. The White House ban also disrupts the global supply chain, because foreign companies can't sell Still, brokerage firm Jefferies said it would be difficult for Huawei to withstand being cut off from U . S

New U . S . measures that restrict exports to Huawei could cost Silicon Valley billions in lost revenue. The White House ban also disrupts the global supply chain, because foreign companies can't sell Still, brokerage firm Jefferies said it would be difficult for Huawei to withstand being cut off from U . S

Huawei “is heavily dependent on U.S. semiconductor products and would be seriously crippled without supply of key U.S. components,” said Ryan Koontz, an analyst with Rosenblatt Securities Inc. The U.S. ban “may cause China to delay its 5G network build until the ban is lifted, having an impact on many global component suppliers.”

To be sure, Huawei is said to have stockpiled enough chips and other vital components to keep its business running for at least three months. It’s been preparing for such an eventuality since at least the middle of 2018, hoarding components while designing its own chips, people familiar with the matter said. But its executives believe their company has become a bargaining chip in ongoing U.S.-Chinese trade negotiations, and that they will be able to resume buying from American suppliers if a trade deal is reached, they said.

The American companies’ moves are likely to escalate tensions between Washington and Beijing, elevating fears that President Donald Trump’s goal is to contain China, triggering a protracted cold war between the world’s biggest economies. In addition to a trade fight that has rattled global markets for months, the U.S. has pressured both allies and foes to avoid using Huawei for 5G networks that will form the backbone of the modern economy.

Huawei Responds To Google's Ban

Huawei Responds To Google's Ban Yesterday it was reported that Google, along with a slew of chipmakers, would be suspending its business operations with Huawei. How To Get A Home Loan With 5% Deposit Find out more on Finder Ad Finder.com.au In real world terms, it would mean that Huawei devices would no longer have access to Google-owned apps, the Google Play store or get Android OS and security updates - other than what is available through an open source license. Huawei has now responded to the decision. This ban was the result of an executive order that prevents U.S.

China' s Huawei Technologies from buying vital American technology threw into question prospects for sales at some of the largest tech companies and Rolland, who said he believed Huawei had built up a one-to-two-year supply of U . S . components, cut price targets on several microchip companies

Since American companies dominate semiconductors, that could smother Huawei ’ s production of everything from 5G base stations to mobile phones. Huawei , which has denied those allegations, said Thursday it was “ready and willing” to engage with the U . S . to ensure product security.

“The extreme scenario of Huawei’s telecom network unit failing would set China back many years and might even be viewed as an act of war by China,” Koontz wrote. “Such a failure would have massive global telecom market implications.”

The American clampdown also deals a direct blow to Huawei’s fast-growing mobile devices division. Huawei will only be able to access the public version of Google’s Android mobile operating system, the world’s most popular smartphone software. It won’t be able to offer proprietary apps and services from Maps and search to Gmail, said the person, who requested anonymity speaking about a private matter. That will severely curtail the sale of Huawei smartphones abroad.

Huawei, the world’s largest smartphone brand after Samsung Electronics Co., was one of a select few global hardware partners to receive early access to the latest Android software and features from Google. Outside of China, those ties are critical for the search giant to spread its consumer apps and bolster its mobile ads business.

The Chinese company will still have access to app and security updates that come with the open-source version of Android. Reuters reported the moves earlier. “We are complying with the order and reviewing the implications,” a Google representative said, without elaborating.

--With assistance from Yuji Nakamura and Gao Yuan.

To contact the reporters on this story: Ian King in San Francisco at [email protected];Mark Bergen in San Francisco at [email protected];Ben Brody in Washington at [email protected]

To contact the editors responsible for this story: Sara Forden at [email protected], ;Peter Elstrom at pe[email protected], Edwin Chan, Robert Fenner

For more articles like this, please visit us at bloomberg.com

©2019 Bloomberg L.P.

Huawei may not even be able to put microSD card slots in future smartphones.
While this wouldn't bother Apple, an Android smartphone without an microSD card slot would be pretty disadvantaged. 

—   Share news in the SOC. Networks

Topical videos:

usr: 54
This is interesting!