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Micron will stop supplying components to Huawei

SemiMediaEdit
August 31, 2020

At the BMO Virtual Technology Summit held recently, Micron responded to the media regarding its supply to Huawei, stating that the company will not be able to continue to supply Huawei after September 14.

Micron is the leading memory chip manufacturer in the United States. Its memory market share ranks third in the world, and flash memory chips rank fifth in the world, with revenue of US$23.4 billion in fiscal 2019.

However, due to the fall in flash memory and memory prices, Micron’s revenue for the 2020 fiscal year ended May was approximately US$20 billion.

Huawei is one of Micron’s major customers. Previously, the chips purchased by Huawei accounted for up to 13% of Micron’s revenue, but this has dropped to 10% in recent years. This means that once the supply of chips to Huawei is stopped, Micron’s revenue will likely drop by $2 billion.

Last year, after the first US ban on Huawei, companies such as Micron and Intel successfully obtained permission to continue supply. However, the rules after September 15 are still unclear.

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