Categories: Technology

U.S Tech Company Projects $2B

Views: 19

U.S Tech Company Projects $2B A Year Losses From Huawei Ban

Published 14 June 2019

One of the U.S Tech largest chip makers will not reach its revenue goals due to sanctions against its Chinese partner Huawei.

The United States chip maker Broadcom Thursday announced that the ban enacted by United States President Donald Trump on the Chinese company Huawei will result in a loss of revenue of US$2 billion per year.

By the end of Fiscal Year 2019, the company expects sales at US$22.5 billion, a decrease compared to previous periods.

This forecast is a consequence of Broadcom not reaching its revenue objectives in the second quarter of 2019 due to reduced sales in its mobile operations, earning revenues of US$900 million in its operations with Huawei.

So far,  not many U.S. high tech parts manufacturers that sell components to Huawei have released their financial results.

The expectation, however, is that most U.S.  tech component manufacturers, including Qualcomm and Intel, will report less revenue starting from mid-May when the Trump administration added Huawei to its “entity” blacklist.

Washington gave companies three months to break relations with the Chinese company.

Broadcom has experienced inconveniences before the U.S. government’s fascination with applying unilateral trade sanctions became fully realized.

“In another knock, the Trump administration last year blocked Broadcom’s $117 billion bid to buy San Diego-based Qualcomm on national security grounds,” reported Finance News.

After hearing of the downward revision of the U.S. tech chipmaker’s revenue, shares in Broadcom fell by as much as 8.6 percent.

Other companies such as Qualcomm, Applied Materials, Intel, Advanced Micro Devices and Xilinx were also down between 1.5 and 3 percent.

The shares of semiconductor companies opened lower on European stock markets Friday, too. There were declines in ASML, Micron Technology, Infineon, Siltronic, STMicroelectronics, and AMS.

The geopolitical risks from the U.S. trade war and Huawei ban are an additional shock worrying transnational investors.

“It’s not just Huawei, it’s deeper than that. OEMs [carmakers] aren’t ordering. Inventory concerns, which were supposed to ease, have not gone away,” a European trader told Reuters.

Broadcom, known for communications chips that power Wi-Fi, Bluetooth and GPS connectivity in smartphones, is also a major supplier to Apple Inc, with the shares of the iPhone maker down 1 percent.

Kombackblog

Recent Posts

Best Anti-Theft Rolling Gates for Homes in Nigeria

  A New Anti-Theft Rolling Gates for Residential Homes in Nigeria   Why Anti-Theft Rolling…

18 hours ago

Best Designer Palm Slippers for Men in Nigeria — 2025 Picks

The Ultimate Guide to the Best Designer Palm Slippers for Men(2025) — (Nigerian Buyers’ Edition)…

6 days ago

How To Spot Fake Designer Shoes In Lagos 2025

How To Spot Fake Designer Shoes in Lagos 2025: The Ultimate Buyer’s Guide In Lagos,…

1 week ago

Top 10 Ankara Fashion Trends in Nigeria 2025

Must-See: 10 Ankara Fashion Trends Taking Over Nigeria 2025   Are you ready to refresh…

1 week ago

How to Care for Your Smartphone in Nigeria Easily

How to Care for Your Smartphone in Nigeria Easily Smartphones have become a big part…

2 weeks ago

Meaning of Nsibidi Symbols – Ancient African Code

Unlocking The Mysteries: Exploring The Fascinating World of Nsibidi Symbols and Their Profound Meanings Nsibidi…

2 weeks ago