These Tech Companies Have Ended Their Relationship With Huawei

Jyotis - May 25, 2019


These Tech Companies Have Ended Their Relationship With Huawei

A series of tech companies, such as chip suppliers, have just discontinued their relationship with Huawei after the United States government released a ban on this Chinese device manufacturer due to the national security accusations.

A series of tech companies, such as chip suppliers, have just discontinued their relationship with Huawei after the United States government released a ban on this Chinese device manufacturer due to the national security accusations.

huawei-trump-ban
The image of Huawei's US ban by Christian Adams.

In recent days, President Donald Trump’s government hasn’t allowed its companies to continue partnering with Huawei, leading to the growing stress in the trade war between China and the US. The strict ban aims at all kinds of goods which have more than 25 percent of materials or technology of the US. As a result, a lot of non-American companies may be affected significantly.

In addition, the Chinese tech giant can keep buying US goods to offer software updates for its smartphones, as well as retain current telecoms networks until August 19, 2019.

Here is the list of tech companies which have ended their relationship with Huawei:

Alphabet Inc.

On May 19, Google discontinued transferring technical services, hardware, and software to the Chinese company. However, Huawei can still make use of Google’s open source licenses to approach the US company’s products.

Android-Huawei-US-Ban
Huawei's new devices will no longer run the Android OS.

US Chipmakers

According to a report from Bloomberg on May 19, many US chipmakers including Broadcom Inc, Intel Corp, Qualcomm Ins, and Xilinx Inc require their workers not to supply important components and software to Huawei until they get any other notice.

Lumentum Holdings Inc.

On May 20, the optical components manufacturer claimed that it would end all kinds of shipments to the Chinese company. According to Lumentum Holdings Inc, it “intends to fully comply with U.S. imposed license requirements.” In the previous quarter, Huawei occupied 18 percent of the total revenue of this company.

ARM

Huawei-Kirin-AMR
AMR announcement the termination of its business with the Chinese company.

The chip designer from Britain under the ownership of SoftBank Group Corp in Japan announced on May 22 that it would follow the US ban and end its relationship with Huawei.

Panasonic Corp

On May 23, Panasonic revealed that it had just discontinued shipping some components to the Chinese company. However, on its Chinese website, the company also announced it would keep selling certain components to Huawei.

Analog Devices Inc.

On May 22, Vincent Roche, the CEO of Analog Devices Inc. stated that his company wouldn’t ship any product to Huawei in the upcoming time.

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Inphi Corp

On May 22, the optical communications chipmaker forecast its earnings in Quarter II of this year would decrease due to the US ban on Huawei. Last year, the Chinese company occupied 14 percent of its total sales.

Qorvo Inc.

On May 21, the US semiconductor company said its revenue in the first quarter of 2019 would hopefully reach $50 million as a result of its stopping shipments to Huawei. Until March 30, the Chinese company held 15 percent of the total revenue of Qorvo.

huawei-vs-US-companies
Can the Chinese company successfully overcome a hard time or not?

Neophotonics Corp

The optical components manufacturer announced on May 23 that it had listed its certain inventories after following Huawei’s US ban. Neophotonics Corp suspended business with the tech company from China to respond to the call of the US government.

Synopsys Inc.

On May 23, Synopsys Inc. said that it was ceasing all trades with Huawei after the US had decided to blacklist the Chinese company a few days ago. This move, of course, will lower its revenue significantly.

As such, until now, there are more than ten tech companies which declared to end business with Huawei. They include Alphabet Inc, Intel Corp, Qualcomm Inc, Lumentum Holdings Inc, Qorvo Inc, Inphi Corp, ARM, Panasonic, Synopsys Inc, and more.

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