Sony wants US approval to bypass Huawei’s ban
Sony wants US approval to bypass Huawei’s ban

According to Nikkei Asian Review, the Japanese company Sony has asked the US company for permission to replenish the Chinese company, Huawei. The company is currently banned from using US tech devices.

Sony of Japan and Samsung of South Korea are applying for approval from the US Department of Commerce to sell components to Huawei, one of the world's largest manufacturers of smartphones and communications infrastructure.

Sony is at risk of its profits without approval from the Commerce Department and as of yesterday (Saturday) there were no signs of US approval.

The Japanese company provides components for products such as 5G devices that are in the high-tech race between China and the United States.

In terms of market share, Sony is one of the largest manufacturers of mobile photo sensor devices in the world.

It is estimated that Huawei accounts for a fifth of Japanese image sensor sales, about $ 9.5 billion behind Apple.

In August Sony expected operating profit for its sensors to fall 45% from the fiscal year ending in March 2021.

The company attributed the drop to a drop in smartphone sales during the coronavirus pandemic. However, analysts said that due to the escalation in US activity against Huawei, the earnings outlook for image sensors may remain lower.

Japanese memory chip maker Kioxia has won US approval to supply components to Huawei.

Huawei subsidiary Toshiba (Kioxia) is also affected by the sanctions imposed on Huawei, and the memory chips in smartphones make up about 40% of the company's sales.

Tensions between the United States and China were a factor in Kioxia's recent decision to delay its initial public offering on the Tokyo Stock Exchange, which was originally scheduled for October 6th.

US chip maker Intel has already received a license to supply PC components to Huawei.

The US is expected to restrict Huawei's access to more stringent communication technologies.

Japanese, Taiwanese and South Korean companies supply Huawei in parts worth $ 26.4 billion each year.

"Due to Japan's important role in the global supply chain, Huawei's purchases from Japanese suppliers have increased by more than 50% over the past year," said Jeff Wang, president of Huawei in Japan.

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