ZTE no longer exists in the eyes of U.S. based suppliers
U.S. Commerce Department’s addition of ZTE to Entity List has significant ripple effect across global wireless industry
Financial Impact not contained within U.S. based suppliers
Salem, NH, March 14, 2016: The global financial impact of ZTE Corporation being placed on the Entity List by the U.S. Commerce Department’s Bureau of Industry and Security on Tuesday March 8, 2016 is significant according to the latest report from EJL Wireless Research titled “Supply Chain and End Customer Impact of United States Commerce Department restrictions for ZTE Corporation.” “Unfortunately for ZTE, the current situation essentially forces the company to shut down its manufacturing operations over the next several weeks as current inventory is consumed. No U.S. based company is able to ship any product to ZTE. We do not see any reasonable near term work around in procuring critical high performance semiconductor components such as multi-core microprocessors and FPGAs” says founder and President, Earl Lum.
The analysis lists U.S. and international and companies that are currently supplying semiconductor and other electronic components and materials to ZTE’s radio access networking equipment division as well as its mobile handset division.
“We have analyzed different scenarios that may occur over the next several months to quarters with the assumption that the export ban to ZTE for U.S. companies remains in effect. The outlook at face value for ZTE is bleak without direct Chinese government intervention,” says Lum.