Huawei has cut orders from key suppliers following US blacklist: Nikkei

Huawei has also downgraded its forecast for total smartphone shipments in the second half of 2019.

China’s Huawei Technologies Co Ltd has cut or cancelled orders to major suppliers for components that go into its smartphones and telecom equipment following its U.S. blacklisting, the Nikkei reported on Wednesday, citing sources familiar with the matter.

Huawei has cut orders from key suppliers following US blacklist: Nikkei

Huawei signage are pictured at a mobile phone shop in Singapore. Image: Reuters.

Taiwan Semiconductor Manufacturing Co Ltd (TSMC) confirmed that orders from Huawei have declined after U.S. President Donald Trump imposed a ban on the Chinese firm on national security grounds, according to the report here.

Huawei has also downgraded its forecast for total smartphone shipments in the second half of 2019 by “about 20% to 30%” from the previous estimate, the Nikkei reported. Both, Huawei and TSMC did not immediately respond to a request for comment.

The ban on US companies from engaging in any business with Huawei also meant that the Chinese tech company couldn’t use any technology with components sourced from the US.

For UK-based chip designer, ARM, a company which happens to patent a number of its designs in the US, the ban meant that the company could no longer offer its chip designs to Huawei's smartphone and server businesses.

In an interview with The Daily Mail, co-founder of ARM, Hermann Hauser, has come out and stated that the row over Huawei will be 'incredibly damaging' for the company.

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