U.S. Chip & electronics makers concerned about the further drop in sales to Chinese companies

Chip & components manufacturers of the United States are nervous about the U.S. trade situation with China since many Chinese firms purchase & use many billions of dollars of electronics products made in the US every year.

Analysts stated in recent interviews that the United States’ chipmakers are hesitant to lose the enormous Chinese market to sell chips into. The beneficial Chinese market is the primary reason why chipmakers & other electronics manufacturers have recently sought licenses to get around the United States’ Commerce Department’s blacklisting of Huawei, told, an analyst at J. Gold Associates, Jack Gold. The status of issuing such licenses is not clear.

None of the major chip or components manufacturers will talk publicly about the direction they want trade talks between the United States & China to go, amidst reports about whether the talks will resume in earnest. However, chip executives have told FierceElectronics in recent interviews that they do not want the opportunity of selling to China to lose or even see a considerable reduction in sales to Chinese OEMs.

In public, some firms have talked generally about concerns over trade, often without mentioning China or American President specifically.

The Chief Executive Officer at the Arrow Electronics, Michael Long stated that the prolonged stress to free trade & cross border business is bringing declining effects to the components business. Escalating trade wars have caused expanded tariffs & abandoned business with a large customer of components. Probably referring to Huawei.

Arrow’s dealings with firms in Asia-Pacific have been the worst, he stated, adding that they fully expected growth there & it just did not happen. It was like a spigot got turned back. I do not see anything is going to change between now & the end of the year as far as a slowdown in components.