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Huawei Ban Poised To Hit U.S. Chipmakers As Stock Prices Drop

Smartphone chip makers are now cutting off the partnership with the Huawei as the restriction came from the administration of the Trump. Huawei is now restricted from purchasing a new American made person components as a company is blacklisted by the U.S. Commerce Department. After the restriction by Trump administration, Google has also left the support for Huawei. Furthermore, Qualcomm, Broadcom, Xilinx, and Intel will also not be selling any parts to the Chinese Giant after the ban took place.

Although it is a huge blow for the U.S. chip makers as, Huawei is considered as the largest provider of telecom equipment and they purchase more than $20 billion telecom parts. Even the stock market came down after banning of the Huawei, Qualcomm stock drops by 4% whereas Xilinx stock drops 5% and various other companies facing similar consequences after the ban. In conclusion, the Huawei ban has become the major reason for the loss of business and investment on U.S. chipmakers facing reduction. By this situation, the U.S. semiconductor industry is facing the reduction of the competition in the market.

Although the acquisition of Huawei is about the national security issue to the U.S. government has taken an important step for protecting the privacy of the citizens. Even the U.S. government can ban any other Chinese or foreign companies who not having the license, this could be one of the biggest impacts in the 5G and Chinese Market. As per the latest news, VanEck Vectors Semiconductor ETF is also having 3% share drop, and this could be a devastating situation for all the chip makers in the U.S.

Google has also suspended from providing the upcoming Android update for Huawei, even Google services applications will not happen support on upcoming Huawei Android devices. Huawei is even developing their own operating system as a substitute for the Android, although they can develop their operating system based on Android as it is having an open source license.

David Lamy
David Lamy Author

David Lamy owns the Bachelor in Atmospheric Science Degree. He is associated with Industry News USA from last 2 years. With proficiency in his work, David obtained a strong position at Industry News USA and heads the Science section. “Weather forecasting” is the field of his interest. He bags total 5 years of experience in this field. Apart from his routine work, David loves to explore his cooking skills. He has participated in various cookery shows.

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