Daily Management Review

Trade tensions are jeopardizing semiconductor manufacturers


Semiconductor manufacturers are facing a serious threat from global tensions, said Lung Chu, President of SEMI China Industry Association, to CNBC.

"Trade tensions are a big uncertainty," Chu said.

According to him, technological control, as well as export restrictions on the Chinese technology giant Huawei "may have a deeper impact on the industry, fundamentally changing even the global supply chain."

In May, the US Department of Commerce decided to put Huawei and its legal entities on the black list, limiting their ability to buy services and components from US firms.

Earlier in August, US Secretary of Commerce Wilbur Ross said in an interview with Fox Business that US companies will receive licenses to continue cooperation with Huawei for another 90 days.

Prior to this, US authorities have already announced a temporary extension of the permission to cooperate with Huawei, its term expired on August 19. A new license extension will allow US companies to continue to work with Huawei until November 19.

This week, the US Department of Commerce received more than 130 applications from companies wishing to sell US products to Huawei. So far no licenses have been granted. If US firms such as Qualcomm and Intel fail, "the slowdown will get worse," Chu warned.

source: cnbc.com