Huawei-Related Stocks Jump After Its Chipmaking Unit HiSilicon Tells of Shift to 'Plan Bs'

[TaiShang]

Huawei-Related Stocks Jump After Its Chipmaking Unit HiSilicon Tells of Shift to 'Plan Bs'

ZHANG YUSHUO
DATE : MAY 17 2019/SOURCE : YICAI

Huawei-Related Stocks Jump After Its Chipmaking Unit HiSilicon Tells of Shift to 'Plan Bs'

(Yicai Global) May 17 -- Chinese equities connected with Huawei Technologies, which the US government put on a trade blacklist this week, surged after the company's chipmaking affiliate HiSilicon said it is deploying its "Plan Bs."

Software provider ArcherMind Technology [SHE:300598], electronic toolmaker Sunyes Electronic Manufacturing Holding [SHE:002388], and water meter producer Sanchuan Wisdom Technology [SHE:300066] all climbed by the exchange-imposed daily trading limit of 10 percent today.

HiSilicon has prepared for the "extreme scenario" that US technologies would not be available and it has immediately turned to backup plans to continue normal operations, He Tingbo, president of the Shenzhen-based semiconductor unit, said in a letter to employees.

US President Donald Trump declared a national emergency two days ago over threats to US technologies and his administration added Huawei and 70 affiliates to a list of firms that from now on will have a harder time securing supplies from US companies.

Huawei has been Sunyes's largest customer for many years, and the telecoms giant cooperates with Sanchuan to develop digitally connected water meters. ArcherMind makes software for Android chips that Huawei uses.

The Shanghai Composite Index was flat this morning at 2,955.77. The Shenzhen Component Index rose 0.1 percent to 9,299.46. The ChiNext Index was up 0.3 percent at 1,537.45.

https://www.yicaiglobal.com/news/hu...ning-after-unit-claims-spare-chips-are-ample-

 

[Skull and Bones]

These normal setbacks will make Huawei more resilient and strong.

 

[TaiShang]

Huawei's Chip Stocks Will Last Over One Year, Company Says After US Sanctions

LI NA
DATE : MAY 17 2019/SOURCE : YICAI

Huawei's Chip Stocks Will Last Over One Year, Company Says After US Sanctions

(Yicai Global) May 17 -- Huawei Technologies has built up a large stock of vital chips, enough to buy the company at least one year of time while it copes with US sanctions, the Chinese telecom giant said today.

The reserves built up as a "Plan B' strategy will be used to shore up product supply, said He Tingbo, chief executive of Huawei's chip unit HiSilicon, in an internal letter to staff, adding that these chips are now part of "Plan A."

US President Donald Trump declared a national emergency two days ago over threats to US technologies and his administration added Huawei and 70 affiliates to a list of firms that from now on will have a harder time securing supplies from US companies.

Over one-third of Huawei's 92 core suppliers are American, followed by Chinese firms at 27 percent. Shenzhen-based Huawei relies heavily on US integrated circuits, software and optical communications vendors.

The company had expected such a situation and started preparation for it last year, an insider at the company said.

Huawei opened its chip design center early in 1991 and upgraded it to HiSilicon in 2004. HiSilicon, as an independent chip maker and made the Kirin series chips widely used in Huawei's handsets. HiSilicom ranked fifth with an income of USD7.6 billion on Digitimes Research's list of global chip designers last year.

The company discussed business sustainability internally decades ago in case of today's situation. The alternative plan cannot match the original's performance in the short-term, but it has no problem in maintaining operation, an executive at the company told Yicai Global.

https://www.yicaiglobal.com/news/hu...over-one-year-company-says-after-us-sanctions

***

These normal setbacks will make Huawei more resilient and strong.

Indeed. Established supply chains are difficult to easily break without inflicting harm (on both sides), but, eventually, a new chain will be established in which those unfaithful to their business commitments are left out.

 

[Skull and Bones]

Indeed. Established supply chains are difficult to easily break without inflicting harm (on both sides), but, eventually, a new chain will be established in which those unfaithful to their business commitments are left out.

Huawei churning out nice phones lately, and there will not be any shortage of demand. And I liked what they did with P30 Pro.

 

[Han Patriot]

In Chinese we have a saying, tough times create heroes. Good luck Huawei, the second largest consumer market and the world largest population is supporting you.