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Trade frictions inhibit US chip makers instead of Huawei

via:C114中国通信网     time:2019/8/14 20:01:00     readed:115


Huawei Mall

Zacks Equity Research wrote in Yahoo Finance that the trade war has suppressed US chip makers rather than Huawei.

Chip stocks fell due to Huawei

In 2018, the entire American market accounted for only 6.6% of Huawei's total revenue of more than $105 billion. The company specializes in telecommunications networks, information technology, smart devices andcloud service. It relies on sourcing chips and technology from several large and medium-sized US companies.

Of the $70 billion in parts and components purchased by Huawei last year, $11 billion was purchased from US companies, including Qualcomm.Intel,MicronTechnology and so on.

Trump's announcement on August 9 caused a heavy blow to chip stocks, although some of them rebounded before the close due to White House clarification. AMD fell nearly 2%, but rose 1% before the close, Micron Technology, Intel and Sijia News fell 2%, 2.5% and 3%.

AMD, Micron Technology, Sijiaxun and Qualcomm's stocks have risen 75.7%, 32.8%, 13.8%, 22.7% and 15.6% so far this year, and Intel fell 2.8% at the same time.

Huawei's next step?

Huawei has beatenappleBecome the second largest smart in the worldMobile phoneManufacturer, whose goal is to go beyondSamsungTake the first place. On July 30, it released its first half of the year, an increase of 23.2%.

Considering trade restrictions, Huawei has planned to invest 800 million US dollars to build a new factory in Brazil. The company has built a facility in São Paulo to produce telecommunications equipment for mobile operators, and the new plant will increase its potential in modems and processors.

TSMC, the world's largest chip maker, has confirmed that Huawei will continue to supply Huawei regardless of the US ban. Since the CFO Meng Zhouzhou was detained last year, Huawei has been stocking parts and components, and has also certified non-US suppliers that will support the supply chain in the long run.

At the same time, Huawei has two new chips designed by its chip company, HiSilicon, including Kirin 985, which is manufactured by 7nm EUV lithography. Huawei will launch its high-end smartphone Mate 30 series based on new chips. The company also launched the 5G version of the Mate 20 X mobile phone.

in conclusion

Trade restrictions may not affect Huawei's revenue, but damage the sales of US chip makers. Huawei is replacing its US suppliers with suppliers in other parts of Asia. Both Murata Manufacturing Co., Ltd. and Taiwan’s Liji Electronics have received increased orders.

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