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Huawei could face a "near-total" cut-off from key semiconductors after the U.S. tightened restrictions on the Chinese firm's ability to obtain critical components, according to one group of analysts.
The latest rule could be a huge blow for the technology giant, which was already facing limited options to procure the chips it needs.
If Huawei isn't able to get access to the components it needs, billions of dollars of revenue is on the line from across its entire business.
"The U.S. moves represent a significant tightening of restrictions over Huawei's ability to procure semiconductors. That puts into significant jeopardy its ability to continue manufacturing smartphones and base stations, which are its core products," Dan Wang, technology analyst at Gavekal Dragonomics, a research firm, told CNBC.
Huawei was not available for comment when contacted by CNBC.
https://www.cnbc.com/2020/08/18/hua...chip-rule-could-deal-lethal-blow-analyst.html
The latest rule could be a huge blow for the technology giant, which was already facing limited options to procure the chips it needs.
If Huawei isn't able to get access to the components it needs, billions of dollars of revenue is on the line from across its entire business.
"The U.S. moves represent a significant tightening of restrictions over Huawei's ability to procure semiconductors. That puts into significant jeopardy its ability to continue manufacturing smartphones and base stations, which are its core products," Dan Wang, technology analyst at Gavekal Dragonomics, a research firm, told CNBC.
Huawei was not available for comment when contacted by CNBC.
https://www.cnbc.com/2020/08/18/hua...chip-rule-could-deal-lethal-blow-analyst.html