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US chip suppliers Huawei will be seriously affected by the introduction of a permanent ban on the sale of Huawei products and are already lobbying to ease the penalties. According to Reuters sources, representatives of Intel and Xilinx met late May with representatives of the Ministry of Commerce to discuss the ban on Chinese society on the ban list. Thus, US companies can not be suppliers without special permission from the government.
Qualcomm also raised the issue with ministry officials. The companies claim that Huawei sells products such as smartphones and servers that use freely available components that are unlikely to pose the same security problems as its 5G equipment. According to one of the sources, this lobbying is not a Huawei help, it is a prevention of damage to US companies.
Last year, Huawei spent $ 70 billion in components and $ 11 billion for US companies such as Qualcomm, Intel and Micron. Qualcomm, for example, wants to continue providing chips for Chinese phones and watches. Corporate meetings with the Ministry were organized by the Semiconductor Industry Association (SIA) to help them explain to employees what the consequences of such a ban would be. The organization is of the opinion that technologies unrelated to national security should not fall under the ban.
Google is also pressuring officials to continue working with Huawei. Today, Broadcom has shaken the global chip industry by predicting that the US-China trade war and the ban on working with Huawei could cost $ 2 billion this year. This is one of the most obvious evidence that Trump's policy can cause serious damage to semiconductor business. The news resulted in a 10% drop in Broadcom's stock price, which wiped out more than $ 11 billion of market capitalization.
Source: Reuters
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