Micron resumes some chip shipments to Huawei
NEW YORK: Memory-chip maker Micron Technology Inc said it has resumed some shipments to China’s Huawei Technologies Co Ltd and expected demand for its chips to recover later this year, sending its shares 10 per cent higher on Tuesday.
Micron chief executive Sanjay Mehrotra said the Idaho-based maker of chips for smartphones and other devices resumed shipping some chips in the past two weeks after it reviewed the United States ban on selling products to the China-based telecommunications company.
“We determined that we could lawfully resume shipping a subset of current products because they are not subject to export administration regulations and entity list restrictions,” said
Sanjay.
“However, there is considerable ongoing uncertainty surrounding the Huawei situation, and we are unable to predict the volumes or time periods over which we will be able to ship products to Huawei,” he added.
Micron and other chipmakers suspended shipments to Huawei after the US government on May 15 added the world’s biggest telecoms equipment maker and 68 affiliates to an “Entity List”, banning it from acquiring components and technology from US firms without government approval.
The sanctions apply to goods that have 25 per cent or more of US-originated technology or materials and likely leave room for global suppliers, but many companies stopped shipments while they studied which components fell outside export control regulations.
The New York Times on Tuesday reported, citing sources, that Intel Corp had also resumed shipping some products to Huawei.
Micron on Tuesday beat analysts’ estimates for quarterly revenue and profit for the fiscal third quarter ended on May 30.
While the ban is expected to cost Huawei US$30 billion (RM124.5 billion) in revenue this year, the company is still able to sell phones with stockpiled components — which some analysts say can last for another year.
Huawei said it had shipped 100 million smartphones this year as of May 30.