According to the British “Financial Times” report, some people who participated in the US briefing recently said that US officials pointed out that the US will allow more and more chip companies to provide components to Huawei as long as they do not use the chips for Huawei’s 5G business.
Analysts believe that could mean that tough U.S. sanctions on China’s leading tech group this year may not be as threatening to its overall business as previously thought. While sanctions will still pose a serious challenge to Huawei’s 5G business, the company’s important smartphone division could have a chance to recover.
“The U.S. Department of Commerce has been telling companies in recent conversations that while Huawei’s supply licenses are handled for denial, if it can prove that your technology doesn’t support 5G, it can be overcome,” said one semiconductor executive involved. That.” I’m talking about cutting-edge telecommunications infrastructure.
Executives at two Asian semiconductor companies said they were optimistic about the resumption of license applications to Huawei. “The US has shown us that chips used in mobile devices are not a problem,” said one of them.
“We see this as a strong sign that the U.S. intends to allow Huawei to continue in the phone business because, as we have said, it does not pose a clear national security threat to the U.S.,” Jefferies analyst Edison Lee wrote.
Comments: The United States has included Huawei on the Entity List, and manufacturers that will supply Huawei chips must obtain a license. On September 19, the general manager of AMD’s business officially announced that AMD has now obtained a license to supply Huawei, a company listed on the entity list. On September 21, the U.S. chip company Intel received a license from the U.S. Department of Commerce, and Intel continued to provide Huawei with processors for servers in its notebook and cloud computing businesses.
Today, the “Financial Times” news further confirmed that the United States will further relax the supply of Huawei by chip companies, as long as it does not involve 5G business. More analysts said that Japan’s Sony and China-owned OmniVision have also been licensed, paving the way for the next phase of Qualcomm and other manufacturers to supply mobile phone chips to Huawei. After all, Huawei’s share in the 5G mobile phone market has remained high. Qualcomm believes that continuing to restrict Huawei is equivalent to giving competitors 8 billion in vain every year, which is undoubtedly another form of blow to local companies.
Samsung’s third-quarter operating profit rose 59%, bearish on fourth-quarter growth prospects
According to foreign media reports, Samsung announced that operating profit in the third quarter of 2020 increased by 59% year-on-year to 12.35 trillion won (about 10.89 billion US dollars), which was in line with previous expectations. One reason for the increase in revenue, Samsung said, was increased demand for smartphones and consumer electronics — smartphone sales rose nearly 50 percent.
It said on Thursday it expected profits to fall in the three months ended Dec. 31 due to weak demand for memory chips and stiff competition from smartphones and consumer electronics.
Shares in Samsung were down 1.19% in early trade, tracking a broader decline in South Korea, with the Kospi down 1.27%.
“Looking ahead, Samsung Electronics expects fourth-quarter profit to decline due to weak demand for memory chips from server customers and increased competition from mobile phones and consumer electronics,” the company said in a statement.
Inexpensive memory chips used in data center servers are likely to weigh on the main profitable semiconductor business in the final three months of 2020. Personal computers are expected to grow, according to smartphones, personal computers and graphics processing units, game consoles and Samsung.
Comment: Samsung, as an important participant in the global smartphone industry, seized the market urgently after Huawei’s 5G mobile phone was unable to obtain chips. Coupled with its strong supply capacity in the semiconductor industry chain, after the launch of Apple’s iPhone 12 5G mobile phone, it has won in the Chinese market. Good response, chasing orders for 2 million units, these additional orders will lead to chasing goods from upstream industry chain manufacturers, and Samsung OLED displays and memory chips may benefit. However, due to the global epidemic, what kind of fluctuations will occur in the markets of European countries and the United States, and the impact on the fourth quarter of the future is unknown.
The information in this article comes from the “Financial Times” and the US CNBC website. This article is compiled and released.