The technology sector is experiencing moments of confusion due to the blockade of the US Government. Some companies, mainly American, have already announced that they suspend all relations with Huawei while others claim that everything continues its course. These are decisions of great importance as Huawei maintains ties with a huge number of companies around the world.
For the time being, the Trump Administration has issued a temporary license until August 19 to maintain existing telecommunications networks and provide software updates to their phones. But that does not prevent many companies have announced that paralyze their technology transmission business with Huawei.
This is a summary of the position adopted by all companies related to Huawei and through which source this position has been made public. A review to know how technology companies are reacting before the law imposed by the US. A blockade against which Huawei says to be fully prepared, but whose impact is still too early to know.
American companies: following the Trump blockade
Through a statement, Google confirmed that it will comply with all the requirements of the US Government, but explains that services such as Google Play or the Play Protect security layer will continue to work on existing Huawei devices.
According to Reuters, the suspension of Google means losing access to Android updates as well as access to Google services and applications on future devices.
Microsoft has chosen not to make any statements regarding Huawei, nor about updates to Windows 10 on laptops or about the use of Azure on Huawei’s servers. Although, it has been detected that the Matebook X Pro have disappeared from its official website. According to TheVerge, the physical stores still sell the Huawei Matebooks they have in stock.
Unlike in Best Buy, Huawei devices are still available to buy on Amazon. Not so in Amazon Japan, where despite being still publicized appear as “not available.”
Qualcomm is a direct rival of Huawei and it does not seem unreasonable to think that the Chinese firm could bet on alternative technologies of its own. Still, according to Bloomberg, he would have informed his employees to stop working with Huawei. According to data from Goldman Sachs, the blockade of Huawei would impact Qualcomm with 205 million euros.
HSBC warned that Apple’s shares could be in danger if China made a move equivalent to that of Donald Trump. So much so that Goldman Sachs has written a note with its forecasts: “We are not assuming restrictions on the production of the iPhone in China at this time, if China restricted the iPhone production in some way, we do not believe that the company could change much the iPhone’s volume outside of China in the short term, and the actions that drove Apple’s production outside of China could also have negative implications for China’s technological ecosystem. ”
Intel / AMD
According to Bloomberg, Intel will offer its processors in the Matebook notebooks and would have informed its employees to comply with the blockade and cut relations with Huawei. Position similar to that adopted by AMD, whose chipsets are also found in some versions of the Matebooks.
The analysts of Goldman Sachs calculate that Intel would lose about 77 million euros with Huawei, while AMD would be affected by 35 million euros, in total 1% and 2% of the total revenues of the companies respectively.
The telecommunications giant is one of the biggest affected by the blockade, with losses estimated at 272 million euros. Shares fell 6% when the news was released. And is that Broadcom has 50% of its income from China and the FTC keeps a high scrutiny about the company.
NVIDIA / Seagate / Western Digital
The GPUs Company also collaborates with Huawei in the delivery of graphics for their laptops. The company has not issued any statement but the impact is estimated at around 18 million euros. A case similar to that of WD and Seagate that collaborate with the delivery of hard drives. In that case, the losses are estimated at 33 and 108 million euros.
Micron / Qorvo / Neophotonics
According to CNBC, 13% of Micron’s sales during the last two quarters went to Huawei. The semiconductor company, like others such as Xilinx, Analog Devices, Qorvo or Skyworks Solutions should adjust their forecasts for the next semesters since Huawei is one of the largest consumers of chipsets, even in the US.
Another company badly affected is Neophotonics, based in California and specializing in 5G whose shares have fallen more than 20% due to the fact that half of their income came from Huawei.
The manufacturer of Gorilla Glass, the protective layer used in Huawei’s mobile phones, offered a statement to Reuters saying it does not expect the blockade to impact its financial results. The company reported that it “was aware of the blockade and will continue to comply with all US trade regulations.”
Facebook, as well as Instagram and WhatsApp, will continue to work on Huawei’s current mobile phones. In spite of everything, the company has not pronounced itself and does not inform what could happen in the future. Although, the three applications of the company are now available in App Gallery, Huawei’s own application store. Other applications such as Netflix, Tinder, Uber, Twitter, Twitch or games of American companies such as Electronic Arts have not specified whether they will affect the blockade to Huawei.
Lumentum is Apple’s largest provider of Face ID technology and one of the companies that confirmed that it stopped supplying Huawei. “Lumentum intends to fully comply with the recent licensing requirements imposed by the US Department of Commerce for the export, re-export and/or transfer within the country of all items subject to US export control regulations. Huawei Technologies, which is why Lumentum has suspended all shipments to Huawei as of the date on which the license requirements became effective. ”
The company reported that Huawei represents 18% of its revenues in the last quarter and adjusted its forecasts for the fourth quarter.
Formerly known as Flextronics, Flex is a production giant, the second largest in the world behind only Foxconn. And it is also, according to Reuters data, the biggest affected in terms of income from the blockade to Huawei, with potential losses of 315 million euros.
The company reported that it has paralyzed shipments of Huawei devices to comply with the blockade, also affecting shipments from India, according to the Economic Times. “We continue to evaluate the regulatory Entity List issued in relation to Huawei and we will ensure that Flex complies with the US and all other commercial laws.” As we reviewed the details of the order and its implications, we stopped shipments worldwide to Huawei and its affiliates until further notice. ”
European companies: examining the influence of the USA
As reported by the BBC and confirmed by TheVerge, “ARM is complying with the latest restrictions established by the US government and is in talks with the appropriate government agencies in the US to ensure compliance with the request. ARM values the relationship with our former partner HISILICON and we expect a quick resolution in this matter. ”
A decision that significantly affects the development of processors for Huawei since their work is based on the architecture of ARM. Despite this, according to the BBC sources, the following Kirin 985 would not be affected.
Rajeev Suri, CEO of Nokia, explained that the company could benefit from the situation with Huawei for the expansion of its 5G networks. “Maybe there’s a long-term opportunity, but more than that, it’s hard to say at this point.”
The British operator EE is one of the first to offer 5G in the United Kingdom. But contrary to what was announced, the Huawei Mate 20X 5G finally will not be among the first devices with 5G. According to The Guardian, EE made the decision after the Google move this week.
Nikkei reported that the German processor maker Infineon had cut off its relationship with Huawei, but later denied the information by publishing a note explaining that “today, the vast majority of the products that Infineon delivers to Huawei are not subject to the restrictions of the US export control law and therefore those shipments will continue. ”
NXP, the Dutch semiconductor maker that Qualcomm tried to buy, would also have canceled its relationship with Huawei, De Telegraaf reports.
As with EE, Vodafone has also decided to keep Huawei out of the 5G promotional launch in the United Kingdom according to the Financial Times. Last January, Vodafone decided to freeze the deployment of core network equipment with Huawei in Europe, although the relationship between the two companies is still present in the long term.
From Vodafone Spain, we are assured that “the recent veto Huawei currently has no consequences regarding their plans for the development of 5G”, will not delay his arrival in Spain and “will wait to see how events unfold to decide what 5G devices will come out. ”
José María Álvarez-Pallete, president of Telefónica, has been in favor of Huawei and states that they prefer to “rely on facts rather than opinions.“
Telefónica subscribes to the position of the GSMA, which said that “European governments must get down to work to find a common certification model that guarantees the safety of 5G equipment before being installed. The controversy has been the subject of debate for years, there has not been any evidence to prove the guilt of Huawei.
At the end of December 2018, Orange was the first major operator to publicly position itself against Huawei for the use of its equipment in the deployment of 5G. However, the decision was in France, since recently Huawei and Orange have been testing the 5G in Malaga. Different positions with the indictment against several Orange workers for espionage.
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Regarding the current veto and following the statements of Google, according to ABC, Orange explained that “will continue to sell and support Huawei products in the immediate future.”
Asian companies: supporting Huawei to a greater or lesser extent
According to SCMP, Lenovo has come out to deny the accusations that they had stopped working with Huawei. For Lenovo, “Huawei is an important customer whose supplies we have never cut, we will continue to strictly comply with the law and regulations of those countries where we operate and will continue to sell products and services to Huawei.”
Samsung / LG
Samsung Display is the provider of the AMOLED screens of the Huawei P30 and P30 Pro, while LG was in the Mate 20 Pro. At the moment the two South Korean companies have not spoken about the US blockade of the Chinese company. While the tension between these traditional rivals is high and has come to misinterpret some message in the networks.
According to Nikkei, the Japanese Toshiba would have “suspended shipments of electronic devices to Huawei” and “is investigating whether it had used any component or technology of US origin in the products that are sold to Huawei.” The Japanese company has not specified which products will stop shipping, but from Nikkei remember that Toshiba has been “provider of hard drives, semiconductors, and high-speed data processing systems LSI.”
Another company about which there has been contradictory information is Panasonic. While media such as CNBC echoed an internal communiqué where “employees were instructed to stop transactions with Huawei and its 68 affiliates covered by the US ban,” subsequently from the Chinese page of Panasonic, He reported that this information was false and was being provided to Huawei in a normal manner.
Sony is the main supplier of the sensors for the Huawei mobile camera, but for the moment it has not communicated any official position. Understanding that it would not be affected.
Softbank / KDDI
The two Japanese telephone operators have decided to delay the launch of the new P30 Lite as reported by The Japan Times. A spokesperson for Softbank explained that the decision comes from “we need to verify if our customers can safely use Huawei smartphones amid concerns about (future) Google moves.”
TDK / Taiyo Yuden
The two Japanese manufacturers of components such as Taiyo Yuden and TDK are among the big ones damaged by the blockade. The shares of the two companies have fallen by more than 20% since Huawei represents about 10% of the revenues for these companies.
TSMC, the big Taiwanese chip maker, has explained through Elizabeth Sun that its shipments to Huawei are not affected by the action of the United States.