KNOCK-ON EFFECT: Analysts said the ban could extend to suppliers whose products contain US-sourced components, with the networking sector likely to be hurt worst

Taipei Times
Date: May 20, 2019
By: Chen Cheng-hui  /  Staff reporter

The US sanction on Huawei Technologies Co (華為) threatens to disrupt the Chinese company’s access to component suppliers and Taiwan’s networking sector could be affected the most, analysts said.

Huawei is the world’s largest maker of mobile base station and optical communications equipment, and the world’s second-largest smartphone vendor. It sources components from countries around the globe, including Taiwan.

However, Washington’s move last week to add Huawei and 70 of its affiliates to the US government’s “Entity List” would ban the Chinese company from procuring components and technology from US firms without US government approval.

The impact could extend to Huawei’s non-US suppliers if the company’s production was forced to shut down, analysts said.    [FULL  STORY]