According to Business Insider, the semiconductor industry is concerned that the US ban on Huawei will hit US chip makers. However, some analysts believe that the chip industry itself is facing bigger problems.
Dan Morgan, an analyst at asset management firm Synovus Trust, believes that this is just a hindrance to chip makers. But he believes that it will not cause devastating effects. The real problem comes from the pressure that the semiconductor industry itself has always had.
Morgan said that US chip makers and other companies are under pressure because revenue will be reduced after they cut off their business with Huawei. But he believes that this impact will not be too fatal for some chip makers, because Huawei only accounts for 2.6 percent of Qualcomm's revenue, while Intel's 1% of revenue is from Huawei. In addition, the global supply chain of the US technology industry is very complex, and it is difficult to clearly point out the financial difficulties encountered in the trade war. Most of the impact on chip companies is indirect and the direct impact may be small.
More importantly, the chip industry itself is facing market uncertainty. The financial reports released by Intel, NVIDIA and other chip vendors have shown that the data center market is not performing as expected. These markets, which were supposed to grow, are facing stagnation, which has hit chip sales and do not know how long it will last. Morgan believes that although export controls need to be noted, the problems facing the chip market itself are more serious and the situation is unknown.
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