(Observer News)
The US government's ban on Huawei has caused heavy losses to its chip giant Micron Technology.
The company's latest financial report shows that in the fiscal year ended August 29, Micron's revenue was $23.406 billion, down 22.98% year-on-year. Micron Technology revenue in the fourth quarter was $4.87 billion, down 42.3% year-on-year.
According to CNN reported on the 27th, Micron said that the US government prohibited them from selling certain types of equipment to Huawei, so the company faced serious difficulties.
In May, the U.S. government added Huawei to the entity list, meaning U.S. companies can no longer do business with Huawei without permission. In June, some tech giants such as Micron were granted partial exemptions, but Huawei is still on the U.S. government's list.
Huawei is a big customer of Micron, and this operation by the US government has caused them a lot of headaches.
So far, Micron has publicly supported White House policy, bloomberg said, but on the other hand, nearly half of the company's revenue comes from the Chinese market.
Micron CEO Sanjay Mehrotra said on the earnings call, "Micron has applied to the Commerce Department to allow us to ship additional products [to Huawei], but we don't have permission now." ”
"If entity list restrictions against Huawei continue and Micron is unable to obtain a license, the decline in sales could be even more severe in the coming quarters," Merotra said. ”
Merrotra's remarks frightened Wall Street. On Friday (27th), Micron's stock price fell 11%, becoming the worst performing stock in the S&P 500 index. In addition to Micron, Qualcomm's earnings report released on July 31 showed that the company's revenue fell 13% year-on-year to $4.9 billion in the third fiscal quarter of this year. Huawei is also Qualcomm's biggest customer.
Source: Futu Cattle