Since the Trump Administration has blacklisted Huawei many tech giants of the US are facing a lot of inconveniences. Skyworks Solutions, a chip making company is the one which is also facing a similar problem due to drastic measures undertaken by the Trump administration.
Back on June 4, 2019, Skyworks forecasted its quarterly earnings, the company showcased drastic downfall in its revenue for the present quarter. While speaking to the press one of the spokesperson of the company stated that Skyworks has stopped its deals with Huawei. At present, the shares of Skyworks have fallen by 1%.
Previously few administrators of the Trump government made it mandatory for Huawei and its other subsidiaries to possess license if they want to buy products manufactured in America. In a recent press conference, one of the executives of Skyworks said that the company has stopped its shipments in favor of Huawei. The spokesperson also stated that at present it is highly unlikely to predict the resumption of shipments. Few other companies like Qorvo, Neophotonics, and Lumentum are also facing problems after the statement made by Trump administration.
While speaking to the press, Tim Jenks stated that Neophotonics is a public company which has the largest share with Huawei. One of the official spokesperson of Skyworks said that the company has to reduce its third-quarter earnings by $60 million. Many analysts are stating that US tech giants are facing a revenue crisis due to a trade war between the US and China. Most of the tech giants of the US fear that escalating tariff will further make the situation worse.
During an exclusive press interview, Dion Weisler said that when companies have to import products from China, with a high tariff, then it will severely impact the manufacturing industry. Most of the tech companies are hoping that the trade war between China and the US might come to an end sooner than expected.
Raul, with a background from Health Sciences and experience of 4 years, is an elite and versatile Senior Content Writer at All Industry News. Here, he writes articles and blogs associated with the domain of Health. Raul writes about the latest breakthroughs, inventions, innovations, initiatives, programs, events, and much more relating to the Health domain. In free time, he likes to spend time with friends and family as well as explore new places.