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Home › MarketWatch › Affected by the US ban on Huawei, Micron’s sales performance declined severely
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Affected by the US ban on Huawei, Micron’s sales performance declined severely

SemiMediaEdit
October 1, 2019

In May of this year, the US government imposed a ban on Huawei and listed it on the entity list, which means that US companies cannot conduct business with Huawei without official permission. After the ban was implemented, many Huawei's US suppliers were affected, and Micron was one of them.

Recently, Micron CEO Sanjay Mehrotra said at the earnings conference that Micron's fourth-quarter sales fell compared with the same period last year. The uncertainty of trade negotiations between China and the United States persists. If Huawei continues to be restricted by the entity list, and Micron does not obtain permission, the decline in sales to Huawei in the next few quarters may become more serious.

Since Huawei is Micron's largest customer, it is unavoidable that Micron's sales performance is affected by the ban. Although Micron has resumed shipping some chips to Huawei, its future sales will not be optimistic if it cannot obtain a license from the Ministry of Commerce.

Mehrotra said that Micron has applied for a license from the US Department of Commerce to increase shipments to Huawei, but the Ministry of Commerce has not yet issued a license.

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