Following the suspension of business with Huawei of many companies, most recently, a Chinese company partner decided to halt production.
SIlicon, Flex, Singapore-based Singaporean company, told employees who needed to suspend production for Huawei. "We have received notice from the company that Huawei smartphone production lines and other devices need to stop, wait until a new announcement, on May 23". – a company employee told Nikkei outside the factory in Zhuhai.
The workers said that the war was the cause and he did not know when the chain would run again. Another source in the supply chain also confirmed with Nikkei Flex stopped production. However, the size of the pause is not clear. Flex is the largest contracting unit for Huawei.
Huawei's partner temporarily stopped producing smartphones for the company
Many European and American companies have suspended business with Chinese companies, after the embargo. The company spokesman said Flex would assess the US government's embargo, as well as maintain compliance.
Some other contract manufacturing units for Huawei are FIH Mobile, belonging to Foxconn, BYD, Huaqin Communication and Wingtech. According to IDC data, Huawei only produces about 10% of its smartphones. This will put the company in a passive position, when the partners stop the contract.
Nomura Securities lowered its forecast for Huawei smartphone sales, believing that its supply chain was heavily impacted by President Trump's ban. From June, cuts can be up to 20% to 30%, or more for the mid-range and low-cost segments.