Huawei denies report that orders to key suppliers cut after U.S. blacklisting

[June 06, 2019]   (Reuters) - Huawei Technologies Co Ltd has cut or canceled orders to major suppliers of components for its smartphones and telecom equipment following its U.S. blacklisting, the Nikkei reported, claims that were rejected by the Chinese firm.

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% to 30%" from the previous estimate, the Nikkei reported, citing sources familiar with the matter.

"Our global production levels are normal, with no notable adjustments in either direction," a Huawei spokesman told Reuters on Thursday, adding there was "no change" to its smartphone sales target.

TSMC did not respond to a request for comment on the report. But it said at its annual general meeting on Wednesday that Washington's move to ban U.S. companies from doing business with Huawei would have a short-term impact on the company, although it was upbeat on the outlook for this year.

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 Commerce Department's so-called Entity List, a move that bans the company from buying parts and components from American firms without U.S. government approval.

A Huawei company logo is seen at a shopping mall in Shanghai, China June 3, 2019. Picture taken June 3, 2019. REUTERS/Aly Song

Ever since, global tech companies have been cutting ties with the Chinese telecom giant and complying with the U.S. ban.

Alphabet Inc's Google has suspended the transfer of some hardware, software and technical services to Huawei.

Optical components maker Lumentum Holdings Inc ceased all its shipments to Huawei, while U.S. chipmaker Qorvo Inc said it expects first-quarter revenue to take a $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.

(Reporting by Akanksha Rana in BENGALURU and Sijia Jiang and Anne Marie Roantree in HONG KONG; Editing by Maju Samuel and Muralikumar Anantharaman)

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