Oliver Haslam on May 20, 2019, 9:43 pm

After Google, Intel, Qualcomm And Other Chipmakers Cut Supply To Huawei

The people at Huawei might have thought that things were as bad as they could get when Google announced that it was taking steps to comply with a ban by the US government on the Chinese behemoth, but things took another turn when more US companies started to fall in line.

Now Intel, Broadcom, and Qualcomm’s have all decided to cut Huawei off according to a new Bloomberg report.

It’s not just in the US where things are going wrong for Huawei, with Nikkei also reporting that German company Infineon Technologies has also stopped shipments to Huawei. In fact, the outlet also lists memory firms Western Digital and Micron Technology as following suit.

All of this comes following a President Trump executive order banning US companies from working with Huawei, with Google being the first to take action. All of this impacts Huawei at multiple levels including its notebook and smartphone markets. Reports do have Huawei apparently stockpiling chips to the tune of three months-worth, but after that, it’s out.

One company that has yet to say anything is Microsoft, with Huawei relying on its Windows software for use on its notebook computers. However, Huawei has been working on its own software that could potentially replace Windows there, as well as Google’s Android services on smartphones, should it come to that.

The hope is that much of this is posturing on the part of the US government in an attempt to renegotiate trade deals with China. Huawei is the one caught in the middle, with many US companies also presumably standing to lose money on lost sales as a result.

(Source: Bloomberg)