The Trump Administration ban on Huawei is expected to hit chipmakers whose shares slipped after the blacklist was announced.
But an analyst says the tech cold war is just one problem confronting the chip industry, which is also reeling from weak demand in the data center market.
Visit Business Insider’s homepage for more stories
Stocks in the processing chip companies retreated after the Trump Administration blacklisted Huawei last week, reflecting fears that they’ll be hard-hit in the brewing tech Cold War between the United States and China.
Huawei CEO Ren Zhengfei told Chinese media on Tuesday that the company is “fully prepared” for a clash with the US, which he considers inevitable as the company works towards becoming a global tech leader.
Ren’s statements come as the US ramps up action against Huawei – the world’s largest telecommunications equipment producer – over concerns that its technology may be used as a backdoor for spying by the Chinese government.
The US last week placed Huawei on a trade blacklist, though on Monday it gave the company a 90-day reprieve before the ban comes into effect. Google responded to the ban by reportedly suspending its business with Huaweiand dropping its licensing on Android, which prevents users from recei