U.S. sanctions on Huawei to cost Asian tech billions

The latest round of U.S. sanctions imposed against Huawei could seriously cripple the Asian technology industry. A new report from S&P Global Ratings suggests up to $25 billion in revenues is under threat as a direct result of the Trump administration’s continued push against Huawei. TSMC and other foundry businesses in Asia Pacific are some of the region’s most likely third parties that will be affected by this turn of events, analysts believe.

TSMC recently confirmed it will comply with Washington’s trade restrictions by completely stopping all Huawei shipments by September. In doing so, Huawei will be left without an alternative to contemporary SoC tech, which will inevitably make its smartphone business grind to a halt.

A hopeless situation for Huawei

Huawei, for its part, continues to claim any suggestion that its tech poses a security threat to the West is frivolous. Left with no other option, however, the firm is now bound to refocus on its domestic market.

Samsung may be the biggest winner of Huawei’s prolonged clash with the U.S. government, at least as far as the global smartphone market is concerned. Over on the 5G front, the companies set to benefit from U.S. sanctions on Huawei the most are Ericsson and Nokia.