Neophotonics warns on impact of new US restrictions on Huawei

Chinese communications equipment giant accounts for nearly half the sales of the US company.

Neophotonics, the listed producer of various optical communications products, including silicon photonics and photonic integrated circuits (PICs), has warned that new restrictions on business with China’s Huawei – by far its largest customer – could have a major impact on future sales.

In August the US Department of Commerce announced further restrictions on trading with Huawei and 38 of its subsidiary and affiliate companies both in China and around the world.

“Huawei and its foreign affiliates have extended their efforts to obtain advanced semiconductors developed or produced from US software and technology in order to fulfill the policy objectives of the Chinese Communist Party,” said commerce secretary Wilbur Ross in the department’s August 17 announcement.

As we have restricted its access to US technology, Huawei and its affiliates have worked through third parties to harness US technology in a manner that undermines US national security and foreign policy interests. This multi-pronged action demonstrates our continuing commitment to impede Huawei’s ability to do so.”