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Sunday, July 21, 2019

Singapore based Flextronics is kicked out of Huawei's supply chain.

https://news.cgtn.com/news/2019-07-18/Huawei-kicks-its-top-phone-assembler-out-of-the-supply-chain-Ir4fTFS79S/index.html

Huawei has kicked Flextronics out of its supply chain. Although Flextronics is a Singapore based company, it is actually an American firm.  Huawei is a major customer of Flextronics and losing such a big customer will impact heavily on its earnings.

Flextronics may also be added to China's unreliable entity list and will be shut out of China's market.

2 comments:

Eric Ho said...

https://finance.yahoo.com/news/flex-says-china-jobs-impacted-073223867.html

BYD has taken over Flex's orders in Huawei. Flex has lost Huawei's sales (US$2.5b) permanently.

Eric Ho said...

https://www.reuters.com/article/us-huawei-tech-flex-exclusive/exclusive-chinas-huawei-seeks-compensation-from-flex-over-withheld-goods-idUSKCN1UW15U

Huawei is suing Flex for losses due to illegal detention of Huawei's goods.