Since the Department of Commerce added Chinese manufacturer Huawei to its 'Entity List,' thus limiting its ability to import U.S.-made products, we've seen some of the company's most important supplier relationships take a hit. Alphabet may have been the vendor with the highest profile as many of Huawei's Android products rely on software services from Google. But chip producers, including one in Germany, have also had to limit their ties to the telecommunications company.
Lumentum, which makes optical networking equipment, announced today that it would comply with the Entity List and end shipments to Huawei. In so doing, the company has revised its revenue estimates for the current quarter down by $30 million or 7% from its original forecast.
Memory supplier Micron has also confirmed it is not supplying Huawei at this time.
Bloomberg reports from sources that Intel, Qualcomm, Xilinx, and Broadcom will stop supplying Huawei indefinitely. Nikkei is also reporting that Qorvo and Western Digital have cut ties. Their products go into Huawei's smartphones, laptops, servers, and networking equipment.
The import ban is also having an effect on international companies that manufacture parts in the United States. Sources have told Nikkei that German semiconductors company Infineon has ceased shipments of certain products to Huawei. An Infineon spokesperson later said that the company is able to adapt its supply chain to continue working with the Chinese firm. Meanwhile, Switzerland's ST Microelectronics is considering its risk and may decide to follow suit sometime this week. Other companies assessing their positions include Japan Display, TSMC, and Toshiba Memory.
The manufacturers that supply to all of these Huawei clients are likely to experience a knock-on effect with fewer orders due to the immediate non-viability of a major upstream client.
Nikkei also reports that Huawei has built a cache of U.S.-sourced components that may last anywhere from 6 months to a year. The company has also pledged to maintain software updates for all of its Android devices. Huawei founder Ren Zhengfei told the media on Saturday that the company will be able to survive without supply from the U.S.