U.S. China Checks Huawei's Shockwave! Taiwan Supply Chain Explores Consequences

The global telecommunications equipment leading manufacturer Huawei was surveyed by the United States and shocked the industry in Taiwan. Currently, Netcom players and component manufacturers have held internal conferences to closely observe the scope of possible future impacts.

Netcom operators in Taiwan pointed out that Huawei’s importance to the mainland government is much higher than that of ZTE, and it has a huge impact on the global industry. However, rivals Ericsson and Nokia are certainly happy to see Huawei’s future business blocked. However, it’s also important to note that China may be affected by Huawei. Check to make a big counterattack.

If Huawei is sanctioned, it will inevitably affect the future industry position in the field of telecommunications and Netcom equipment, and even affect Huawei's global 5G industry layout. Taiwan’s related suppliers include Hon Hai, Delta Electronics, Tai Yang, and Suntec, etc. We have a deep relationship with Huawei and are also closely following Huawei's follow-up.

In this regard, Hon Hai has never commented on a single customer message. However, analysts expect that Hon Hai’s major growth momentum from China Netcom’s terminal applications in recent years will come from the mainland market, especially Huawei’s series of products. Therefore, if relevant customers are subject to trade sanctions, the manufacturing production may be affected. Demand, Hon Hai will also be indirectly interfered.

The industry speculated that Hon Hai’s product revenue accounted for about 20% of product revenue last year, mainly including first-line Netcom brand partners. At the same time, mainland China’s related customers accounted for about double digits in Netcom’s revenue.

The industry also believes that Hon Hai’s subsidiary, Hong Teng, is expected to acquire Belkin (Belkin), a major maker of American Netcom, this year. Perhaps the relevant layout will reduce the impact of some customers due to trade sanctions, but the specific benefits can only be realized after the transaction is completed. appear.

2016 GoodChinaBrand | ICP: 12011751 | China Exports