As the United States imposed new sanctions on Chinese giant Huawei, more and more companies are facing the heat. With new restrictions, Japan-based companies that supply chips to Huawei, are facing the risk of losing billions of dollars in revenue.
Now, as per the latest report, in order to avoid losing money, Japanese companies Sony and Kioxia have applied for approval from the United States to continue doing business with Huawei. It’s noteworthy that Intel has already been granted a license to supply chipsets to the Chinese giant.
Huawei is one of the top buyers of image sensors from Sony while Kioxia is one of the world’s leading flash memory chip makers and is also a major supplier to the Chinese telecom giant, which was also the leading smartphone brand in Q2 2020.
Since the U.S. government added new sanctions on the Chinese giant, Sony trimmed its capital spending plan for three years, as there’s now a gap of billions of dollars in sales from supplying image sensors to Huawei.
EDITOR’S PICK: Xiaomi introduces RAMDISK for smartphones; significantly boosts game performance
On the other hand, Kioxia, which is a Toshiba spinoff, has warned that restricting supply to Huawei could trigger memory chip oversupply and thus lower the prices. Because of the uncertainty, the company has shelved its plan for a multi-billion dollar listing.
However, these Japanese companies are not the only ones in line to get a license from the U.S. South Korean companies like Samsung Electronics and SK Hynix have also applied to get a green signal to continue supplying components to Huawei.
UP NEXT: SMIC holds preliminary exchanges with the US over export restrictions
