China’s Huawei Technologies Co. Ltd. has cut or cancelled orders to major suppliers for components that go into its smartphones and telecom equipment after its U.S. blacklisting, the Nikkei reported on Wednesday, citing sources familiar with the matter.
Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) confirmed that orders from Huawei have declined after U.S. President Donald Trump imposed a ban on the Chinese company on national security grounds, according to the report.
Huawei has also downgraded its forecast for total smartphone shipments in the second half of 2019 by “about 20 per cent to 30 per cent” from the previous estimate, the Nikkei reported.
Both Huawei and TSMC did not immediately respond to a request for comment.
The Trump administration in May added Huawei to a trade blacklist. The move put Huawei and 68 affiliates in more than two dozen countries on the U.S. Commerce Department’s “Entity List,” a move that bans the company from buying parts and components from American firms without U.S. government approval.
Ever since, global tech companies have been cutting ties with the Chinese telecom giant and complying with the U.S. ban.
Tech giants such as Alphabet Inc. suspended the transfer of hardware, software and technical services to Huawei while Microsoft Corp. said it had stopped accepting new orders from the company, according to a media report.
Optical components maker Lumentum Holdings Inc. ceased all its shipments to Huawei, while U.S. chip maker Qorvo Inc. said it expects first-quarter revenue to take a US$50-million hit due to a halt in shipments to the Chinese company.
Huawei is allowed to buy U.S. goods until Aug. 19 to maintain existing telecoms networks and provide software updates to its smartphones.