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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.

Alphabet Inc.’ s Google cut off the supply of hardware and some software services to the Chinese mobile phone equipment giant, another person In Europe, the impact of the ban was also being felt, though companies there are only restricted from supplying research or products made in the U . S

Alphabet Inc.’ s Google cut off the supply of hardware and some software services to the Chinese giant, another person familiar said 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

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.

Tech giant Huawei caught up in trade war between US and China - Продолжительность: 1:41 CNA 5 289 просмотров. What happens to Huawei smartphones and tablets now?

Chipmakers including Intel Corp., Qualcomm Inc., Xilinx Inc. and Broadcom Inc. have told their employees they will not supply Huawei until further notice, according to people familiar with their actions.

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.

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 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

The impact of the Trump administration' s threats to choke Huawei Technologies Co. reverberated across the global supply chain on Monday, hitting some of the biggest component-makers.Chipmakers including Intel Corp., Qualcomm Inc

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.

Top U . S . corporations from chipmakers to Google have frozen the supply of critical software and components to Huawei Technologies Company . 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

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.

“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 [email protected], Edwin Chan, Robert Fenner

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

©2019 Bloomberg L.P.

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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. 

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This is interesting!