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Panasonic suspends component shipments to Huawei

Panasonic has halted shipments of some components to Huawei to comply with proposed US export restrictions in the latest setback for the Chinese telecoms equipment maker.

The decision comes as companies across Japan’s tech sector including SoftBank, Toshiba and Murata Manufacturing are still scrambling to assess the impact of the US ban issued last week.

Still, investors in Huawei were given some clarity after Taiwan Semiconductor Manufacturing Company, the world’s largest contract chipmaker, said on Thursday that it would continue to ship to HiSilicon, Huawei’s chip design affiliate.

The decision averts a worst-case scenario under which Huawei would have been unable to replace at least some semiconductors it can no longer buy from US suppliers with products developed in-house.

Elizabeth Sun, a TSMC spokesperson, said the US move to put Huawei on an export control blacklist would have an impact on the global economy, but the effect on the semiconductor industry was hard to gauge so far because of the industry’s complexity.

TSMC’s guidance for the second quarter remained unchanged, she added.

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