Experts who were commissioned by the US authorities to conduct a study are convinced of this.
Reuters was able to find out that the possibility of strengthening sanctions against Huawei Technologies, which is being actively discussed by the US authorities, can have a serious negative impact on NVIDIA’s revenue. While U.S. companies were barred from supplying products to Huawei Technologies in 2019, the individually reviewed permits allowed them to maintain cooperation with the Chinese giant in areas that U.S. regulators did not consider critical to national security.
Image Source: Reuters
The report, which caught the eye of Reuters, leads its authors to the conclusion that if the discussed new restrictions on the supply of products from US companies for the needs of Huawei come into force, they will have a significant economic impact on NVIDIA.
Last year, this supplier received approximately 21% of all revenue in China and Hong Kong, which part of these funds was formed from relationships with Huawei, it is obviously difficult to say, but NVIDIA representatives argue that the Chinese market as a whole provides serious opportunities for the entire US semiconductor industry.
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Along the way, the document states that for Qualcomm, a possible tightening of the sanctions policy against Huawei will have much less consequences than for the Chinese company itself, which depends on mobile modems of this American brand. Now US officials are discussing two possible scenarios: one of them provides for the complete revocation of export licenses from companies cooperating with Huawei Technologies, the second allows selective preservation of supplies of not the most critical components, albeit with a ban on the export of solutions related to 4G networks.