In an interview with Nikkei today, Steve Digital, CEO of Western Digital, said that the US storage device manufacturer has stopped working with Huawei and stopped shipping its products to the company. China, after Huawei was blacklisted by the US government.
Earlier in April, Western Digital (WD) announced a strategic partnership agreement with Huawei to strengthen their relationship in areas such as hard drives and non-volatile flash storage technology. WD is also a supplier of products for Huawei, including flash memory for smartphones.
Currently, WD is the world's third-largest NAND flash memory chip manufacturer in terms of market share, behind South Korea's Samsung Electronics and Toshiba. While Huawei accounted for less than 10% of the company's revenue, but Mr. Milligan admitted, this is a "meaningful customer" with the company.
So far, many US chip makers, including Qualcomm, Qorvo, Lumentum, AMD and Skyworks, have all confirmed that they have stopped their partnership with Chinese companies or cut down on earnings forecasts after the decision. US government ban.
With WD's decision to stop cooperating, Huawei will only be able to find memory chip vendors such as Toshiba, Samsung or SK Hynix of Korea. Memory chips are very important and are present in a variety of electronic devices – such as smartphones, laptops, network devices, data center servers, and connected cars.
According to Hideki Maeno, director of consultancy at Japan's IHS Markit, the supply of equipment such as hard drives and tight memory will severely damage Huawei, even though they still have no problems at the moment. The suspension of cooperation between Huawei and WD also shows that Washington's ban not only freezes the factory but also all forms of business between the two companies.
Mr. Milligan also said that the company does not participate in any technology transfer with Chinese companies and does not have any current plans to do so, even if the company is involved in a joint venture with Tsinghua University, the organization backed by the Chinese government. This joint venture was established at the end of 2015 for WD to sell data center storage systems in China.
Refer to Nikkei Asian Review