This is the latest action by Washington to target China's high-tech industry since the US-China trade tension has risen. It is trying to stop US businesses from sourcing products from Huawei and ZTE, the two largest telecom equipment and handset manufacturers in China. The US has not revealed that it will ban domestic wireless telecommunications. Which Huawei, ZTE-produced products are purchased by the industry with federal grants.
According to industry analysts, China’s two major telecommunications equipment and mobile phone brands currently have a relatively close relationship between Huawei and Taiwan’s electronics industry. If the US’s prohibition of purchase is limited to network equipment such as base stations, then Huawei’s base stations will suffer the most damage from Hon Hai, the maker of Netcom equipment. If it expands to smart phones, it will include TSMC, MediaTek, Riyueguang, KYEC and other semiconductor companies.
Analysts also pointed out that last year, Hon Hai’s proportion of product revenue, Netcom accounted for about 20%, mainland customers accounted for about double-digit revenue in China Netcom, relying on Huawei’s exports to the U.S. market, such as Huawei’s CNC vendors, once subject to policy sanctions, Affecting manufacturing partners.
Taiwan Semiconductor Manufacturing Co., Ltd. will hold a law meeting today. The latest actions and related impacts of the United States on Huawei and other Chinese telecom equipment and mobile phone factories are expected to become the focus of attention.
The U.S. Federal Communications Commission (FCC) passed the case with a unanimous vote of 5:0 on the 17th. The FCC will first publicly gather public opinions and collect more information, and then it will be determined in a matter of months.