I'd rather be fined 2 billion than supply Huawei!Foreign media The situation has expanded
As we all know, Huawei has become a focus in the United States since it shined in the field of smartphones and communications with its self-developed Kirin chips and powerful 5G technology, respectively"Take care of the object"Therefore, in recent years, the United States has launched a series of suppressions and sanctions against Huawei, forcing Qualcomm, Google and other American companies to cut off the supply to Huawei through various means, but despite such tremendous pressure, Huawei has never compromised and is still trying to break the blockade by increasing R&D investment.
However, when many American companies have drawn a line with Huawei, and even Google canceled the **GMS service to Huawei, there is an American company that ignores the warning of the United States but insists on supplying Huawei instead of fines, which is the American hard disk manufacturer Seagate, as many foreign media said: things are getting bigger.
Compared with the fines for supplying Huawei, Seagate also encountered problems.
Some time ago, according to Reuters, the U.S. Department of Commerce said that the hard disk manufacturer Seagate will be fined up to $2 billion because Seagate has repeatedly violated U.S. export control measures, and has shipped more than 7.4 million hard drives to Huawei, totaling more than $1.1 billion, while the United States has also restricted Seagate's export authority.
As one of the world's largest manufacturers of hard drives, Seagate's products are used in artificial intelligence, servers, cloud computing and big data services. As one of China's largest technology companies, Huawei is naturally a major customer of Seagate, and Seagate has a good cooperative relationship with Huawei.
The U.S. fined $2 billion.
According to U.S.** regulations, if Seagate wants to continue supplying to Huawei, it must first obtain the appropriate license"To protect *** and information security interests", which requires Qualcomm, Intel and other U.S. companies that want to export their products to apply for licenses. Qualcomm Inc., Intel Corp., and other U.S. companies wishing to export their products must apply for a license. Seagate hard drives also use American technology, so they have to apply for a license in the United States, but Biden is obviously having a hard time approving it.
Powerful American companies such as Qualcomm and Nvidia have had to comply with U.S. restrictions and find ways to circumvent the ban and ship to the Chinese market without obtaining a shipping license. What about Seagate?"Seagate's CEO said:"Our products are not covered by the US ban, so we don't need a license to ship hard drives to Huawei.
But the U.S. side apparently disagreed, and according to people familiar with the matter, Seagate was warned by the U.S. Commerce Department in August last year, but Seagate never compromised. Now that Huawei is back strongly, Raimondo is expected to be angry with Seagate, and the U.S. Department of Commerce has directly fined Seagate $2 billion, which is almost a quarter of Seagate's annual revenue.
Why would Seagate prefer to pay a fine rather than supply Huawei?
In fact, the reason why Seagate withstood the pressure and would rather be fined for supplying Huawei is not blind. As the world's largest consumer market, Seagate has also made a lot of money in the Chinese market in recent years, with a market share of 445%, so for Seagate, the Chinese market can bring a lot of orders and profits.
According to statistics, Seagate has delivered more than 7.4 million hard drives to Huawei in the past two years, worth about $1.1 billion, providing necessary hardware support for Huawei's related businesses, and Seagate has also benefited from Huawei's orders.
Sum up. The hustle and bustle of the world is for profit, and the hustle and bustle of the world is for profit. China has a huge consumer demand, and many American companies account for more than 30% of their revenue, so in the face of absolute interests, the U.S. ban will not be recognized, and it wants to be thorough in the Chinese market'Split up and break the chain'It's also unrealistic, and now Seagate has directly pierced this layer'Window paper'Now that Seagate has opened this layer directly'Window paper', then it is likely that more American companies will follow suit, and US sanctions and repression may also become a fueling factor.