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Home Technology

Huawei Restrictions Pose Threat on Japan, Taiwan, and South Korea Suppliers

The decision cuts the heart of suppliers reliant on U.S. technologies

The Global Economics by The Global Economics
September 13, 2020
in Technology, Top Stories
Reading Time: 1 min read
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Huawei Restrictions Pose Threat on Japan, Taiwan, and South Korea Suppliers

Huawei Restrictions Pose Threat on Japan, Taiwan, and South Korea Suppliers

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The #Trump Administration after escalating its sanctions against Huawei Technologies- restricting the Chinese telecommunications giant from foreign-made chips- has posed new challenges for suppliers in Japan, South Korea, and Taiwan.

According to the new rules, any non-U.S. company is restricted from selling chips made using U.S. technologies to Huawei without any special license.

As the rules starve Huawei of components, it represents an existential threat for Japanese, Taiwanese, and South Korean companies; the ripples of the decision felt everywhere. As per the estimates by a director at U.K. research firm Omdia, Akira Minamikawa, companies from #Taiwan, #SouthKorea, and #Japan collectively supply over $26.4 billion worth of parts to Huawei; the crackdown would most definitely curtail the production and upgrades from these companies.

Supplying over 30% of Huawei’s components, Japanese companies would bear the brunt of the situation the most; some similar fate for Taiwan Semiconductor Manufacturing Co, the world’s largest chipmaker.

Beyond affecting #Huawei and its American suppliers, U.S. agencies are determining if chipmaker Semiconductor Manufacturing International Corp. (SMIC) should be added to the Commerce Department’s “entity list”. Largely dependent on U.S. equipment and software, SMIC would suffer damage with the disruption.

Tags: HuaweijapanSouthKoreaTaiwanTrump
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The Global Economics Limited is a UK based financial publication and a bi-annual business magazine giving thoughful insights into the financial sectors on various industries across the world. Our highlight is the prestigious country specific Annual Global Economics awards program where the best performers in various financial sectors are identified worldwide and honoured.

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The Global Economics Limited is a UK based financial publication and a quarterly business magazine giving thoughtful insights into the financial sectors on various industries across the world. Our highlight is the prestigious country specific Annual Global Economics awards program where the best performers in various financial sectors are identified worldwide and honoured.

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