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Huawei cuts orders to key suppliers after US blacklisting

Huawei Technologies has reduced or cancelled orders to major suppliers for components that go into its smartphones and telecom equipment following its US blacklisting, sources familiar with the matter told the Nikkei Asian Review.

The effect on the embattled Chinese company’s supply chain, including cuts to orders of as much as 30 per cent, is another possible sign that Washington’s crackdown has started to hit the world’s top telecom equipment provider and second-largest smartphone maker. At stake is Huawei’s leading market share at the dawn of 5G wireless networks, with Ericsson and Nokia in close pursuit while smartphone rivals Samsung Electronics and Apple fight for consumers.

Taiwan Semiconductor Manufacturing Co., the world’s largest contract chipmaker, confirmed that orders from Huawei have declined since the Chinese company was hit with a de facto ban on using US technology. Taiwan-based Auras Technology, a top supplier of cooling modules for Huawei devices, said a Chinese customer’s orders were affected, without naming the company.

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