Huawei says expect business impact from U.S. move to cut off chip supply

FILE PHOTO: A man in a face mask walks past a Huawei shop, amid an outbreak of the coronavirus disease (COVID-19), in Beijing, China, May 18, 2020. REUTERS/Thomas Peter

SHENZHEN, China (Reuters) – Huawei Technologies [HWT.UL] said on Monday that its business will be inevitably impacted by the latest U.S. move to restrict chip sales to the Chinese technology company, but it is confident of finding solutions soon.

Guo’s comments are the company’s first official response after the Trump administration announced new measures to try to block global chip supplies to Huawei Technologies on Friday.

The new rule from the Commerce Department expands U.S. authority to require licenses for sales to Huawei of semiconductors made abroad with U.S. technology, vastly extending its reach to halt exports to the world’s No. 2 smartphone maker.

Speaking at Huawei’s annual global analyst summit, the company’s rotating chairman Guo Ping also said that the company is committed to complying with U.S. rules, and it has significantly increased R&D and inventory to meet U.S. pressures.

Reporting by David Kirton, editing by Louise Heavens

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