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Huawei was blocked by a $6.6 billion 5G super-large order, and the market value of this giant rose by $5 billion Dollars! - Naijatechnews

Huawei was blocked by a $6.6 billion 5G super-large order, and the market value of this giant rose by $5 billion Dollars!

Naija Tech News (NTN) on 08, and in content, Huawei was blocked by a $6.6 billion 5G super-large order, and the market value of this giant rose by $5 billion Dollars!, Huawei, U.S .

Huawei was banned, the 5G super-large order hit the giant, and its market value rose by 34 billion! The countdown to the cutoff, Huawei just made a helpless decision…

Wu Yu, reporter of China Fund News under Securities Times

Huawei is being completely banned by the United States, while Samsung is “profitable.” In the latest news, Samsung has won a major 5G order worth US$6.6 billion (approximately RMB 45 billion) from Verizon Telecom.

This is one of Samsung’s current largest 5G orders.

After the news came out, Samsung’s market value soared by 34.5 billion yuan.

Samsung wins 45 billion 5G orders

On September 7, Samsung won a US 5G solution contract worth US$6.6 billion (approximately RMB 45 billion) from Verizon Communications.

This is one of Samsung’s largest 5G orders at present, and the transaction scale is equivalent to 3.43% of Samsung Electronics’ annual sales of 230 trillion won in 2019.

According to regulatory documents, the contract has been finalized on Friday and is valid from June 30 to December 2025.

“We are pleased to expand our long-term partnership with Verizon Telecom to advance its next-generation network. With this latest long-term strategic contract, we will continue to push the boundaries of 5G innovation to enhance Verizon Telecom’s customers Mobile experience.” Samsung said in a statement.

Verizon Telecom issued a statement pointing out that through this latest long-term strategic contract, it will continue to break the boundaries of 5G innovation to enhance customers’ mobile experience.

According to data, Verizon Telecom is an enterprise that provides innovative communications and technology solutions. It is the largest local telephone company in the United States, the largest wireless communications company, and the world’s largest provider of printed and online yellow pages. The company’s main businesses include telecommunication services, mobile communications, voice services, data services, and yellow pages, among other things.

Samsung shares soared 1.62%

Market value soared 34 billion yuan

After the news came out, Samsung Electronics’ share price rose sharply on September 7. Eventually, it closed up 1.62%, and the market value surged by US$5 billion to US$310 billion, or 34 billion yuan in a day.

Foreign media: Huawei was sanctioned

Samsung will benefit

According to foreign media analysis, due to US sanctions on Huawei, the global alliance will even shut Huawei out, which will increase Samsung’s market share.

The United Kingdom issued a statement in July prohibiting Huawei from participating in 5G construction and ordered the complete removal of Huawei equipment from its 5G community by 2027, including its desire to introduce new suppliers such as Samsung and Japan’s NEC.

According to CNBC, Verizon CEO Hans Vestberg (Hans Vestberg) did not use any Huawei equipment in July last year. Verizon’s order already belongs to Samsung.

Samsung is the world’s largest manufacturer of memory chips and electronic products. It has been committed to expanding its market share in the 5G equipment market and has invested in 6G mobile networks.

Cape Funding and Securities analyst Park Sung-soon said: “Samsung’s profitable order from Verizon will help the company expand its overseas telecom equipment companies, and it can undoubtedly use leverage to carry out barter trade with different countries. .”

According to data from market analysis agency Dell’, Samsung accounted for 3% of the global complete telecommunications equipment market in 2019, second only to Huawei’s 28%, Nokia 16%, Ericsson 14%, ZTE’s 10% and Cisco 7%.

TSMC cuts supply of Huawei chips next week

Continued to be suppressed, Huawei is facing a situation where there is no core available

On May 15, the US Department of Commerce announced the strengthening of export controls and required TSMC to stop accepting new orders from Huawei. Orders that have been accepted will be shipped before September 15, and orders after that will need to be approved by the US when exporting.

In 2019, Huawei is the second largest customer of TSMC after Apple, but after September 14, the world’s largest foundry will not be allowed to continue shipping to Huawei. There are reports that TSMC’s production line is operating 24 hours a day, hoping that Huawei will produce as many chips as possible. Even so, Huawei chips are not enough.

On August 7, Yu Chengdong, CEO of China and Huawei’s consumer business, said that due to the second round of US sanctions, the production of chips will end after September 15. This year may be the last generation of Kirin’s high-end chips, out of print. Due to the lack of chip supply, shipments of mobile phones are expected to further decrease this year. “Our mobile phone business is now very difficult, chip supply is difficult, and it is out of stock.”

Then, on August 17, the United States continued to escalate its suppression of Huawei. The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) announced a new “upgraded” Huawei ban on the evening of the same day. The core of this ban is that a complete blockade of Huawei’s procurement of chips from third parties is tantamount to unplugging Huawei’s “respirator” that Huawei barely survives. This trick is both ruthless and absolute.

The United States is even more provocative to say that the ultimate goal of this ban is to “prevent Huawei from obtaining chips of the same level as the United States,” and stated the ultimate goal unabashedly.

After this upgrade, unless there is a special license, any chips developed and produced based on American software or technology will not be available to Huawei.

In other words, even the chips designed by MediaTek and Qualcomm are not allowed to be shipped to Huawei.

According to the latest news on August 29, the United States continues to upgrade its blockade of Huawei’s chip supply. As for how Huawei will deal with the problem, Huawei’s consumer business CEO Yu Chengdong said, “We are thinking of a way.”

On September 7th, according to a report from Taiwanese media Digitimes, due to the increasing pressure from the outside world, this has also affected its other business units except chips and smartphones. Huawei has reduced its orders for parts and components used in TV production by 30%. -40%.

According to the report, if the supply of semiconductor chips cannot be resolved, Huawei’s TV business will still face uncertainty in 2021.

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