Huawei Blocked So Boomerang, US Company Starts Vomiting Blood. Secretly Persuaded Trump To Soften

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Huawei

Huawei is a Chinese company hardest hit by the US vs. China trade war.

After Huawei was blacklisted in the United States, a number of US companies then stopped their cooperation with the Chinese gadget giant, including Facebook and Google.

Instead of complaining and lobbying, the Chinese company then tried to find local partners and other countries to fill the gap.

A number of sources said that the action was carried out even when the Chinese technology giant actually avoided lobbying.

In fact, Huawei is currently preparing its own Operating System to replace Google's Android.

The OS named HongMeng is even claimed to be 60 percent faster than Android.

In the midst of the tough sanctions of President Donald Trump's government towards China, it turned out to cause a boomerang for many US companies.

A number of US technology companies reportedly began experiencing vomiting of blood because they lost a huge income, reaching 11 billion US dollars or around Rp 155 trillion.

Chip manufacturers from the United States, including Qualcomm and Intel, finally quietly urged the US government to relax sanctions to Huawei.

A source said that a number of executives from US chipmakers ranging from Intel, Xilinx Inc., Qualcom, Micron Technology Inc., to Broadcom held a meeting with the US Ministry of Comm.

Broadcom Inc., for example has the potential to lose revenues of US $ 2 billion due to the decision.

Shares of technology companies continued to plummet. Broadcom's shares dropped by 8.6% and their market capitalization was reduced to US $ 9 billion.

Qualcomm, Applied Materials Inc., Intel Corp., Advanced Micro Devices Inc. and Xilinx Inc. also experienced a similar decline in the value of shares in the range of 1.5% to 3%.

Some suppliers of Huawei also recorded a decrease in shares, even 29 of the 30 members of the Philadelphia Chip Index continued to fall.

Bradcom is known to produce communication chips to provide Wi-Fi connectivity, Bluetooth and GPS on smart phones.

The collapse of Broadcom shares also spread to Apple Inc., one of the biggest buyers of Broadcom products. This iPhone producer shares eroded 1%.

The same thing happened for similar companies from Europe such as STMicroelectronics, Infineon and AMS.

"We can see clearly and simply that this is the impact of the ban without clarity on market substitution," said Broadcom Chief of Executive Hock Tan.

According to them, Huawei's relationship with a number of its trading partners in the US only covers general products related to smartphones and computer servers so that it will not have an impact on security as stated by the government.

"This is not about helping Huawei. This is about preventing losses to American companies, "said the source, as reported by Reuters.

The US Semiconductor Industry Association (SIA) acknowledged the meeting to inform officials about the impact of the ban on Huawei.

"We have conveyed this perspective to the government," said Jimmy Goodrich, SIA vice president.

The Department of Commerce representative said the agency routinely responded to questions from the company regarding the scope of regulations. But he added that the meeting did not affect government policies to enforce the law.

Huawei was included in the US blacklist following the failure of negotiations to end the US vs China trade war for several months.

The US accused Chinese companies of carrying out espionage actions, theft of intellectual property, and forcible transfer of technology.

The biggest impact of the US vs. China trade war is the weakening pace of global industry, especially the electronic manufacturing sector.

The semiconductor industry has actually experienced a slowdown since the second semester of 2018.

Industry players have also been warned that in April there will be a downturn in the cycle that can occur for the next two years.

Despite a decline in sales of 40-60 percent this year, Huawei and a number of Chinese companies immediately made adjustments quickly.

A number of Chinese electronics companies immediately turned to the US, looking for new partners in the Asian region.

This can further aggravate many US technology companies that have been the main players in the semiconductor, software and application business.

As a global company with abundant research HR, various Chinese companies immediately prepare an Android replacement OS, namely HongMeng.

Unmitigated, for this Huawei is assisted by other large Chinese companies.

Huawei, which lost its Android license, developed HongMeng as a replacement operating system.

Not only Huawei, other smartphone vendors from China, Xiaomi, Oppo and Vivo, also tried this operating system.

According to the news, Huawei is now intensively testing HongMeng which is said to be released this year.

In the trial, Xiaomi, Oppo and Vivo also sent an internal team to share in the operating system.

As a result, the HongMeng operating system is claimed to be able to boost cellphone performance 60 percent faster than if using the Android OS.

Quoted from the Global Times on Friday (6/14/2019), in the development of this operating system Huawei did not work alone.

In addition to working with Xiaomi, Oppo and Vivo, Huawei also cooperates with Tencent to help improve the performance of HongMeng OS.

Unfortunately both Tencent and Xiaomi, declined to comment on the news.

Huawei itself accelerated the making of this operating system after the United States government entered the name Huawei into the list named "entity list".



Companies that are included in the list are not allowed to buy components in the form of software and hardware to companies from the US, without permission from the US government.

So, Huawei has the potential to lose the Android operating system license which is actually owned by Google, which is a company from the United States.

Not only that, several other companies also suspended their cooperation with Huawei, for example Facebook.

Facebook also suspends cooperation with Huawei so that applications such as Facebook, Instagram and WhatsApp will not be able to be installed by default on Huawei phones.

Nevertheless, some analysts revealed that the HongMeng operating system is expected to begin to be embedded in the upcoming Huawei P40 phone.

Even according to the nearest source, there are still a number of large technology companies that also helped Huawei develop this operating system.