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It will be a great challenge for Japan and the U.S. to exclude Huawei

The report pointed out that if countries further expand their actions to exclude Huawei, it will in turn cause a blow to US and Japanese companies.

On December 18th, Japanese media said that if the trend of eliminating Huawei is expanded, it will also hit Japanese and American companies that are part of the supply chain.



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According to the "Nikkei Business News" website reported on December 17, as the largest communications equipment company in China, Huawei ranked first in the field of communication base stations, ranking second in the field of smart phones. For semiconductors alone, Huawei’s annual purchases exceeded 1.5 trillion yen, and 500 billion yen of parts were purchased from Japanese companies.

According to the report, as a Huawei supplier, companies such as Broadcom, Japan Display and SK Hynix are listed in the US, Japan and Korea. “It is necessary to understand the scope of Huawei’s influence with 10 trillion yen in operating income.” US-based securities analysts are worried about the aftermath of the global supply chain.

According to the "Nikkei Business News" website, Huawei's purchases in 2017 alone reached $14 billion. Chinese media reported that Huawei procured a large amount of money from US companies, procured $1.8 billion from Qualcomm and $700 million from Intel.



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The report said that Huawei is promoting the self-production of semiconductors, but there are still vulnerabilities. Huawei is strengthening its semiconductor design through its subsidiary, Hisilicon. However, the manufacturing is entrusted to TSMC, and more than half of them are purchased from external companies such as Broadcom.

The report pointed out that if countries further expand their actions to exclude Huawei, it will in turn cause a blow to US and Japanese companies.

For example, Huawei's supply of semiconductor Qualcomm, the proportion of sales in Huawei is considered to be around 5%. In Japan, JDI provides smartphone LCD panels, and TDK provides batteries, which are large customers who account for a few percentage points of Huawei's sales. The stock prices of TDK and SK Hynix continued to fall by about 10% after the arrest of Meng Haozhou.



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The report pointed out that Huawei's purchases in Japan in 2017 were about 500 billion yen. A plan was proposed to some suppliers to double their purchases in Japan by 2020. If Huawei's sales slowdown and equipment investment reduction become a reality, it will have a wide impact on the industry.

Huawei supplier has 34 Japanese and American companies

According to the reference news network reporter, Huawei has announced the list of all core suppliers for the first time, and the number of US manufacturers is the largest.

A total of 92 companies listed as Huawei's core suppliers, including 33 US manufacturers, 11 Japanese manufacturers, 37 Chinese manufacturers (25 mainland Chinese manufacturers, 10 Chinese Taiwanese manufacturers, 2 Chinese Hong Kong manufacturers), the entire list It covers almost all major vendors in the global IT industry, such as Qualcomm, Broadcom, MediaTek, Samsung, Sony, Tianma, Foxconn, TSMC, Microsoft, Oracle and Texas Instruments.