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Deal
Japan’s Sony Corp and memory chip maker Kioxia Holdings Corp have requested U.S. approval to continue supplying Huawei Technologies Co Ltd, Nikkei reported Sunday.
FILE PHOTO: The Huawei logo is seen at the IFA consumer technology fair, amid the coronavirus disease (COVID-19) outbreak, in Berlin, Germany, on September 3, 2020. REUTERS / Michele Tantussi / File Photo
TOKYO: Japan’s Sony Corp and memory chip maker Kioxia Holdings Corp requested US approval to continue supplying Huawei Technologies Co Ltd, Nikkei reported Sunday.
If confirmed, the move follows other tech companies like Intel Corp, which recently received licenses from US authorities.
With ties between the United States and China at their worst in decades, Washington has been pressuring governments around the world to expel Huawei, arguing that the telecoms giant would transfer data to the Chinese government for espionage.
Huawei is one of the main customers for Sony’s image sensors for smartphones. Kioxia Holdings Corp is the world’s second largest manufacturer of flash memory chips and supplier to Huawei.
Nikkei https://asia.nikkei.com/Spotlight/Huawei-crackdown/Sony-and-Kioxia-seek-US-approval-to-bypass-Huawei-ban said without US licenses, Sony and Kioxia they would face risks to their earnings.
Kioxia warned that US restrictions on Huawei could lead to an oversupply of memory chips and lower prices. It recently shelved a plan for a billion-dollar listing as tensions between the United States and China cloud the global chip market.
A Sony spokeswoman said the company was in compliance with all regulations, but could not comment on individual customers.
A spokesperson for Kioxia also declined to comment.
(Reporting by Makiko Yamazaki, Ju-min Park; Edited by Dan Grebler)
