American chipmaker, Broadcom Inc said it will lose about $2 billion from its revenue due to Huawei ban on the US.
The chip company said U.S.-China trade tensions and the ban on Huawei Technologies Co Ltd is affecting its markets.
Data compiled by Reuters News shows that shares of Broadcom fell 10% in early trading in New York, wiping more than $11 billion off the market value of the company, previously based in Asia but now with its headquarters and main listing in the United States.
Other competitors of Broadcom such as Qualcomm, Applied Materials Inc, Intel Corp, Advanced Micro Devices Inc and Xilinx Inc were all down between 2.5% and 4%.
Chief Executive Officer Hock Tan said in a press conference that: “We’ll see a very sharp impact simply because (there are) no purchases allowed and there’s no obvious substitution in place,”
“We’re talking about uncertainty in our marketplace, uncertainty because of the – of demand in the form of order reduction as the supply chain out there constricts – compress, so to speak,” he said.
The ban on Huawei is said to also have a bigger effect on the telecoms industry. Telecoms industry lobby group, GMSA said European countries will increase 5G budget by more than $60 billion.