Strategy Analytics: Huawei Sanctions Bad for US Economy & Semiconductor Competiveness

Long-Term Risk to U.S. Technology Leadership

BOSTON–(BUSINESS WIRE)–Strategy Analytics today said that the new U.S. Government policy announced in May 2020 against Huawei threatens U.S. semiconductor industry exports, innovation, and global leadership. Huawei Sanctions: Bad for Telecoms, Global Semiconductors and the US Economy details the short-term and longer-term effects of the new policy on U.S. semiconductor firms, global wireless and international trade overall.

Christopher Taylor, Director of RF & Wireless Components and author of the report, stated that “The new trade policy aimed against Huawei seems to be motivated by U.S. domestic politics rather than a clear understanding of international trade in the technology sector. The U.S. has legitimate differences with China, but the damage to the U.S. semiconductors industry from this new policy would start at $7 billion in lost sales, and put the industry’s future competitiveness at risk through reduced R&D spending, far outweighing any benefits to the U.S.”

Stephen Entwistle, VP of Strategic Technologies at Strategy Analytics, added “Semiconductor suppliers Broadcom, Intel, Micron, Skyworks, and Qualcomm and many others will be affected. The U.S. semiconductor industry employs about 250,000, and a loss of U.S. semiconductor leadership would put these jobs at risk, with a multiplier effect extending to three or four times as many U.S. jobs. Foreign semiconductor firms in the supply chain using U.S. technology including MediaTek and the foundry TSMC are also barred from selling to Huawei under the policy, which will affect the entire electronics industry.”

Source: Strategy Analytics, Inc.

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Strategy Analytics, Inc. is a global leader in supporting companies across their planning lifecycle through a range of customized market research solutions. Our multi-discipline capabilities include: industry research advisory services, customer insights, user experience design and innovation expertise, mobile consumer on-device tracking and business-to-business consulting competencies. With domain expertise in smart devices, connected cars, intelligent home, service providers, IoT, strategic components and media, Strategy Analytics can develop a solution to meet your specific planning need. For more information, visit us at www.strategyanalytics.com.

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Contacts

Report contacts:
European Contact: Stephen Entwistle, +44 (0)1908 423 636, kmak@strategyanalytics.com
US Contact: Alexander Kutana, +1 617 614 0741, akutana@strategyanalytics.com
China Contact: Lin Qiu, + +86 10 8975 5246, LQiu@strategyanalytics.com

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