Caixin
May 17, 2019 07:27 PM
BUSINESS & TECH

Charts: Huawei’s Exposure to U.S. Suppliers

Huawei Technologies Co. Ltd. could soon be cut off from its U.S. suppliers, a punitive action for violating U.S. sanctions that almost put crosstown rival ZTE Corp. out of business last year. Despite their prowess as two of the world’s largest makers of telecom networking equipment and smartphones, both Huawei and ZTE rely heavily on U.S. firms to supply them with components for their products.

The following graphics look at how much Huawei buys from the U.S. and what, as well as which products have alternate non-U.S. suppliers.

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ZTE was first to experience the heat from Washington last year ago when the U.S. Commerce Department banned it from buying U.S. components without special permission. The company briefly ceased most of its operations and said its existence could be in jeopardy, before reaching a settlement that allowed it to resume its U.S. purchases. 

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The Commerce Department indicated it was taking similar action against Huawei this week, prompting the company to say it will seek “remedies immediately and find a resolution.”

U.S. companies currently provide more than one-third of Huawei’s components, making the group the company’s biggest supplier, even larger than its home market on the Chinese mainland, according to an analysis by research house Jefferies. Other major suppliers include Taiwan and Japan, which each accounting for more than 10% of its components.

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