Research
Interview Synopsis

Huawei & Chinese semiconductor companies’ strategies amid trade war

  • Multi Asset
  • TMT
  • North America

Third Bridge Forum interviewed a former marketing manager at Huawei Technologies Co Ltd. The specialist discussed Chinese semiconductor companies’ strategies during the China-US trade war, focusing predominantly on Huawei. The Interview provided invaluable insight for equity and private equity investors interested in the technology sector.

Click on the hyperlink below to access the full Forum transcript.

Huawei’s access to Semiconductors amid Trade War

The former manager began the conversation by explaining how extensive the effects of the China-US trade war could be, especially with the advent of 5G. He suggested that Huawei could not only be deprived of access from US suppliers, but it could also be cut off from some European vendors. This would have devastating impacts for Huawei and other Chinese manufacturers, particularly as they depend so heavily on ready-made modules and generally do not create their own semiconductors.

Significantly, Huawei is highly dependent on North America for radio frequency (RF) front-end components. The specialist explained the steps Huawei has taken to reduce a shortfall of RF chips, as well as potential solutions to its supply issues. Not only has the trade tension affected the company’s supply of semiconductors, but it is also likely to reduce the performance of Huawei overseas. Considering Europe accounts for 40% of Huawei’s sales volumes, this could prevent the company from improving its smartphone business position abroad.

To conclude, the specialist placed Huawei’s future R&D under the spotlight and expressed his thoughts on the China-US trade war and its potential outcomes. Interestingly, the former manager was relatively pessimistic about resolving the trade war at any point in the near future.

To access all the human insights from Third Bridge’s Chinese Semiconductors Industry interview, click below to view the full transcript.

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The information used in compiling this document has been obtained by Third Bridge from experts participating in Forum Interviews. Third Bridge does not warrant the accuracy of the information and has not independently verified it. It should not be regarded as a trade recommendation or form the basis of any investment decision.

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