Some US Companies Are Also Suffering Because Of Trump’s Ban On Huawei

The US-China trade war is negatively affecting on Chinese tech giant company Huawei since Trump has banned it. Huawei, which is one of the largest tech company in the world, now going through the wrong time because of Trump’s decision of putting a ban. However, Huawei is not the only company which is suffering because of this trade war issue because US-based companies like Intel, Broadcom, Qualcomm, Xilinx are also going through a similar phase. All of these companies are not performing well because they sell electronic chips to Huawei. Since the company is not able to make a contract with any US-based companies, they might lose a big client.

Shares of Broadcom went down by more than 5% on Monday because it has earned a revenue of $285 million from Huawei in the first quarter of this year. There’s another California based networking modules company called NeoPhotonics whose shares have fallen by more than 30% since the US has put the ban on Huawei. Many electronic equipment production companies are dependent on Huawei, which means losing such type of customer is going to cost a lot of money to them. A few months ago Huawei released the list of its key suppliers in which 13 US-based companies were included. One can get an idea about not only Huawei, but there are many American companies which in many ways dependent on Huawei.

Many big CEOs of these companies have shown they’re concerned about this potential ban on Huawei and they expect US-China will resolve this matter of trade dispute quickly. However, according to the current situation, the trade war tension is on its peak, and both the government are in no mood to discuss any trade agreement. So it will be hard for those companies which are a crucial supplier of Huawei since they are losing a tremendous amount of revenue.