Tech companies Intel Corp., Qualcomm Inc. and other chipmakers such as Xilinx Inc. and Broadcom Inc. are reportedly cutting off their business ties with Huawei following Google’s suspension of the Chinese company’s Android license.
According to a report by Bloomberg, Intel, Qualcomm, Xilinx, adn Broadcom have decided to cut its supplies to Huawei until further notice.
It was earlier reported that Google will immediately cut off its supply to the Chinese giant after the Trump administration included Huawei to its Entity List together with some 68 affiliates which will be required of a license issued by the Bureau of Industry and Security (BIS) to be able to do business with U.S. counterparts.
If such ban will be implemented, the action is expected to take huge effect on both the Chinese company as Intel is known as the main supplier of server chips to Huawei, Qualcomm provides its processors and modems for its smartphones, Xilinx sells programmable chips for networking, and Broadcom supplies switching chips.
Ryan Koontz, an analyst with Rosenblatt Securities Inc. said that Huawei “is heavily dependent on U.S. semiconductor products and would be seriously crippled without supply of key U.S. components.”
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,” Koontz added.
(Photo source: techbao.com/ thejournal.ie)