Sony turns to suspend its image sensors supplies to Huawei
After the starting of the Huawei ban, most companies have suspended supplies to Huawei, because products with American technology must apply for a specific supply license from the United States.
For example, Kioxia suspended the supply of flash memory chips to Huawei, Mitsubishi Electric suspended the supply of optical semiconductor devices, Renesas suspended the supply of amplifiers, and Toshiba suspended the supply of hard disks.
At present, Sony has also suspended the provision of image CMOS sensors to Huawei. Before that, most of Huawei’s high-end flagship devices used image sensors provided by Sony.
Supplying products to Huawei allows Sony to earn US$1 billion in revenue each year, so it will also cause losses to Sony if it cannot supply Huawei.
According to media reports, Sony is considering applying for a license to continue to supply Huawei. If it can obtain approval from the US Department of Commerce, the impact can be minimized.
At the same time, Sony will also expand its diversified customers to make up for the negative impact of its inability to supply Huawei. Sony earns billions of dollars in revenue from Huawei every year.
In response to potential negative effects, Sony has cut capital expenditures of US$470 million, which will help Sony stabilize its performance and avoid instability in subsequent financial reports.
The report also claims that Japanese companies play an important role in Huawei’s global supply chain. In 2019 alone, Huawei brought Japanese companies up to 10.4 billion U.S. dollars in revenue.
Of course, some people in the industry say that most companies are currently suspending supply based on sound considerations. These companies may need more time to review their product technology.
After all, continuing to supply Huawei without a thorough review may step on mines, and the consequence of stepping on mines is that they may also be sanctioned by the United States and cause more serious economic losses.
Via: mydrivers
