Foreign media: ZTE is blocked, and American companies are also having a hard time.
according to foreign media reports, the US government's ban on ZTE last week makes life difficult for many American companies, because they will lose a large part of their revenue
the U.S. Department of Commerce announced last Monday that ZTE would implement a seven-year export ban on ZTE due to its violation of the settlement agreement reached with the U.S. government last year as a key link in quality control in the machinery industry. During this period, American companies will not be allowed to sell their products to ZTE
affected by this, the shares of ZTE's suppliers in the United States have declined, such as Qualcomm and Acacia communications, a supplier of optical fiber communication components
according to the prediction of Handel Jones, CEO of international business strategies, a technology consulting service company, American chip manufacturers sell about $1.5 billion of products to ZTE every year. Last year, about 3.8% of the world's intelligence was produced by ZTE
acacia communications is seriously affected by the ban that ZTE will fall behind if it does not innovate. The company said in a document in February this year that ZTE contributed 30% of its $385million revenue last year. By the end of last year, Acacia communications had 354 employees. The company said, "if we lose or temporarily lose a major major customer, the company's financial situation will be seriously affected."
since the US Department of Commerce announced the ban on April 16, Acacia communications' share price has fallen 31%. The company said it was taking remedial measures for the affected transactions and assessing their impact
meanwhile, the share price of Qualcomm, a ZTE processor supplier, fell 9%. Stacy Rasgon, an analyst at Bernstein research, a market research company, estimated that ZTE contributed about 1.5% to 2.5% of Qualcomm's 2017 revenue of $22.3 billion
in addition, since the ban was issued, the share price of Xilinx, a San Jose chip manufacturer, has also declined by 7%. A spokesman for the company said that it was aware of the seriousness of the problem and would further discuss the problem at the financial report meeting on Wednesday
for the ban of the US Department of Commerce, ZTE also warned the US government that the ban would not only affect ZTE's own development, but also bring serious losses to ZTE's US partners
it is reported that at least 10 American companies regard ZTE as their partners, such as optical communication product suppliers
neophotonics and Oclaro, memory chip manufacturer GSI technology, and wireless chip manufacturer skyworks solutions
among them, ZTE contributed about 4% of neophotonics' revenue of $292.89 million last year. The company said that affected by the ZTE ban, its revenue would not increase by 5% this year. Neophotonics' share price has fallen 13% since the ban was issued
in addition, ZTE contributed about 18% of Oclaro's revenue of $600.97 million last year. GSI technology said that ZTE directly or indirectly purchased its products worth more than US $500000 last year. Skyworks solutions regards ZTE as a "core customer"
in addition, Corning, the "Gorilla" glass supplier, said that it was evaluating whether the ban would affect its products produced outside the United States. The spokesman of the reverse free circulation loop said: "the company will continue to pay attention to the development of the situation and evaluate whether the ban will affect our products produced abroad."
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