Shares of America’s Micron Technology Inc received a boost after the company announced it had resumed the sale of microchips to China’s Huawei Technologies Co Ltd.
Micron Chief Executive Sanjay Mehrotra, said Micron resumed shipping of its smartphone chips to Huawei after it reviewed the ban.
“However, there is considerable ongoing uncertainty surrounding the Huawei situation, and we are unable to predict the volumes or time periods over which we will be able to ship products to Huawei,” he said.
However, Mehrota regretted that Micron had lost about $200 million as a result of its suspension of all supplies Huawei.
For the records, Huawei is the biggest customers to Micron. Other American semiconductor companies such as Intel have argued that chips for smartphone and other non 5G telecommunication components should not fall under prohibited list.
It would be recalled in May the the Chinese telecoms giant, Huawei, was placed on the U.S. ‘Entity List’ banning it from getting computer and telecommunication components from American companies with special approval from the White House.
Micron Technology and a host of other American computer chip makers suffered severe losses as a result of their suspension of all business dealings with the Chinese companies.