Foxconn Halts Huawei Phone Production Amid Ongoing US Trade Blacklist
Huawei slashes smartphone orders, prompting Foxconn to stop several production lines as the US blacklist severely disrupts the Chinese tech giant's supply chain.
Huawei drastically reduces its smartphone orders, prompting Taiwanese manufacturer Foxconn to halt several production lines. This reduction stems directly from the United States government's blacklist, which bars the Chinese technology giant from acquiring vital components from American companies. The move marks a significant shift for Huawei, a company that shipped over 200 million handsets last year and aims to become the world's top smartphone vendor by 2020.
The US blacklist severely impacts Huawei's handset manufacturing because the company relies heavily on Google's Android operating system. With Google suspending business with Huawei, the tech giant faces massive hurdles in providing Android updates to its global customer base. These production cuts at Foxconn serve as the clearest indication yet that the US trade restrictions are causing tangible damage to Huawei's smartphone business outside of China.
Huawei actively pursues contingency plans to mitigate these damages, including the deployment of its own self-built Android-based operating system. The company also fights back through legal channels by filing a motion that challenges the US ban as unconstitutional. Additionally, Huawei sends its American employees home from its Shenzhen headquarters and instructs Chinese staff to cease technical meetings with US counterparts.