Japanese and Korean Companies Will Lose Billions Due to US Sanctions on Huawei: Report

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New sanctions on the Chinese smartphone producer Huawei by the Trump authorities haven’t solely considerably affected the corporate’s gross sales, stock, and manufacturing however can be placing Japanese and Korean firms in deep waters.

The newest sanctions imposed by the US have banned all exports to Huawei for semiconductors made with American expertise. As a outcome, firms like Sony, Samsung Electronics, and SK Hynix are going to lose billions of {dollars} in income.

According to a latest report by analysis agency Omdia, final yr Japanese firms provided components price round $10.four billion to Huawei. Now, because of the sanctions, they’re scrambling to switch Huawei with one other purchaser. Similarly, Renesas Electronics needed to forcefully cease supplying semiconductors for 5G community base stations to Huawei.

As far as Korean firms are involved, Huawei is likely one of the prime 5 clients for Samsung, whereas SK Hynix reportedly relies on the Chinese tech big for over 10 p.c of its complete gross sales. According to experiences, China accounted for 41 p.c of all South Korean chip export within the first seven months of this yr and was valued at $22.49 billion.

The repercussions of the difficulty have a much more outreaching impact than simply pressuring Huawei. However, the businesses are planning to use for particular licenses with the United States to proceed doing enterprise with Huawei.


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hamza Iltaf

Hey, I am Hamza Iltaf Co-founder of Usama Younus Inc. I am a Model. I'm very passionate about news and sports stuff.

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