Apple Faces Growing Threat from Resurgent Huawei Amid Semiconductor Breakthrough
Portfolio Pulse from Anusuya Lahiri
Apple Inc (AAPL) faces a significant threat from Huawei Technologies Co, Ltd in China due to a major semiconductor breakthrough by China's largest semiconductor maker SMIC. This development has raised concerns in Washington about how Huawei developed this technology without access to critical components due to US sanctions. The new chip, the Kirin 9000S, is a significant milestone for China's semiconductor industry. The US Department of Commerce has expressed interest in Huawei's chip, prompting potential further export restrictions.

September 19, 2023 | 12:30 pm
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Apple faces a significant threat from Huawei's semiconductor breakthrough in China.
The semiconductor breakthrough by Huawei could potentially increase its market share in China, posing a threat to Apple's business in the region. This could negatively impact Apple's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Taiwan Semiconductor Manufacturing Company Ltd (TSM) previously manufactured Huawei's chips, but they were no longer accessible due to U.S. export restrictions.
While TSM previously manufactured Huawei's chips, the U.S. export restrictions have severed this relationship. However, it's unclear how this will impact TSM's business in the short term as they may have already adjusted to this change.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50