2 Solid 5G Stocks That Could Win Despite Losing Huawei Business
Huawei is once again at the center of a storm brewing between the U.S. and China. Last year, the Department of Commerce added the Chinese telecom giant to the "Entity List," restricting exports of hardware and software to Huawei by American corporations.
And now, Taiwan Semiconductor Manufacturing has reportedly stopped taking orders from the embattled Chinese company. This development comes after the U.S. tightened export controls that now require all foreign chipmakers using American equipment, software, or intellectual property to apply for a license before selling to Huawei.
This development comes at a bad time for mobile chipmakers such as Taiwan Semiconductor, as the smartphone market has taken a significant hit thanks to the novel coronavirus pandemic. The outbreak of COVID-19 has disrupted both sales and supply chains. The latest Commerce Department notification is another headwind for suppliers as Huawei is one of the leading lights of the 5G smartphone space and losing it as a customer is a hit.
Source Fool.com
