Reluctant to give up the Chinese market Micron and Intel have resumed supply to Huawei

Reuters news on June 26 said that Micron has resumed its supply to Huawei two weeks ago. Affected by this, the company rose more than 10% after the close of the day.

Micron is the largest manufacturer of computer memory chips in the United States, and Huawei is its largest customer. According to Micron’s third-quarter earnings report for 2019, as of May 30 this year, the company’s third-quarter net profit was $ 804 million, down 78% year-on-year.

On the day of the release of the earnings report, Micron CEO Sanjay Mehrotra held a conference call, clearly indicating that the profit fell so much, and the US ban on Huawei has a very big relationship, this ban caused Micron to lose in the quarter. At least $200 million in revenue.

However, Sanjay Mehrotra also said that “the company decided to sell some products to Huawei that are not subject to the ban of the US Department of Commerce. These products are not within the scope of export management regulations, nor are they restricted by the ‘entity list’. However, as far as the current situation facing Huawei is concerned, there is still a lot of uncertainty in supply.”

In addition to Micron, the New York Times also reported that Intel has resumed partial shipments to Huawei. Affected by this, the former share price has rebounded slightly. However, Intel declined to respond to and comment on the news.

In response, the New York Times commented that “recovering transactions is enough to show that it is very difficult to crack down on Huawei, and changing the global e-commerce network may have immeasurable consequences.”