Already detrimental to Huawei's smartphone business, the US ban will impact the telecom and enterprise equipment market in the long run
Luke Lin, DIGITIMES Research, Taipei
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With Huawei already stocking up on crucial components, the US Commerce Department's ban will not stop Huawei from providing its products and services in the short term. However, the ban has spooked consumers, enterprises and telecom operators, shaking their confidence in Huawei's ability to continue delivering quality products and services in the future.
According to Digitimes Research, with global market demand on a moderate increase in second-quarter 2019, Taiwan-based semiconductor foundries showed recovery. TSMC, UMC and VIS together generated total revenues of US$9.13 billion in the second quarter, up 8.9% on quarter but down 2.5% on year.
According to Digitimes Research, Taiwan-based server vendors, including suppliers of motherboards, end systems, storage devices and related network equipment, continue to enjoy growth in 2018. In terms of volume, global server shipments will show continuing growth throughout 2018 and 2019.
Amid bleak outlook for downstream vendors, uncertainties surrounding the US-China trade tension, factory relocation and exchange rate volatility, global smartphone AP shipments may experience further decline in 2019, down two years in row, according to Digitimes Research estimates.