DRAM chipmaker Nanya Technology Corp (南亞科技) yesterday said that it would stop shipping chips to Huawei Technologies Co (華為) from today due to US export restrictions, joining the world’s other major memorychip suppliers, including Micron Technology Inc, Samsung Electronics Co and SK Hynix Inc.
The company said in a regulatory filing with the Taiwan Stock Exchange that it would seek the US government’s permission to resume shipments to the Chinese company.
“To comply with trade-related laws and rules, the company will suspend product shipments to Huawei,” Nanya said.
Nanya expects no substantial revenue losses from the lack of Huawei orders.
The Chinese company and its subsidiary HiSilicon Technologies Co (海思半導體) contribute only a small fraction of Nanya’s overall revenue, the filing said.
Nanya supplies chips for Huawei’s communications devices, rather than for large volume products such as smartphones and servers.
To reduce operating risks, the company said that it is stepping up diversification of customers and broadening its product portfolio, as well as making inroads into new areas, such as servers.
It aims to boost the revenue contribution from DRAM chips for servers to about 10 percent by the end of this year, from about 5 percent to 7 percent last quarter, the company told reporters in July.
Nanya last quarter generated 60 percent of its revenue from DRAM chips for consumer electronics, such as TVs and game consoles, while chips for computers accounted for 25 percent.
Huawei’s local memorychip supplier Macronix International Co (旺宏電子) on Thursday last week said that it would apply for US government permission to supply chips to Huawei.
Huawei is Macronix’s third-largest client, making up just less than 10 percent of its total revenue last year.
Printed circuit board supplier Mutual-Tek Industries Co Ltd (相互股份) in a regulatory filing said that the US restrictions would reduce its revenue significantly due to losses of orders.
Mutual-Tek posted revenue of NT$1.53 billion (US$51.89 million) for the first six months of this year, with Huawei contributing 40 percent.
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