Apple Face ID parts supplier Lumentum Holdings Inc followed Google on Monday in clamping down on the business it does with Huawei Technologies, after U. S. President Donald Trump imposed a ban on the Chinese firm on national security grounds.
LONDON (Reuters) – Apple Face ID parts supplier Lumentum Holdings Inc followed Google on Monday in clamping down on the business it does with Huawei Technologies, after U. S. President Donald Trump imposed a ban on the Chinese firm on national security grounds.
A source told Reuters on Sunday that Google had suspended business with Huawei that requires the transfer of hardware, software and technical services, except those publicly available via open source licensing.
That was the first major outcome following Trump’s decision late last week and sent a shock-wave coursing through the chip industry globally, weakening shares of partners of the Chinese firm.
While most U. S. suppliers have yet to issue statements on their position on the Huawei ban, Bloomberg reported that Intel Corp, Qualcomm Inc, Xilinx Inc and Broadcom Inc have all now told their employees they will not supply Huawei until further notice.
Xilinx said the company was aware of the Denial Order issued by the U. S. Department of Commerce and is cooperating. Other companies did not immediately respond to Reuters’ requests for comment.
Shares in the companies were lower across the board and analysts said the fallout was likely to exceed that around a ban last year on another big Chinese supplier, ZTE.
“The U. S. companies have risk. We saw it with ZTE. Those with more exposure to Huawei are companies like Skyworks, Qualcomm, and Seagate,” said Chaim Siegel, an analyst with Elazar Advisors.
