Last Updated Monday, June 17, 2019 10:17AM EDT
Ren said Huawei will reduce capacity and expects revenue of about $100 billion annually for the next two years, compared with $105 billion in 2018. In February, he said the company was targeting $125 billion in 2019. U.S. suppliers are taking a hit, too. Last week, chipmaker Broadcom reduced its 2019 revenue forecast by $2 billion, saying customers are trimming orders because of the trade tensions, including the U.S. curbs on sales to Huawei. Broadcom previously estimated full-year revenue of $24.5 billion. The research firm IHS Markit said Micron and Western Digital will also suffer, as they lose a leading buyer of memory chips and storage devices.
Huawei has brought a lawsuit in the U.S. this March challenging the constitutionality of a national security law which prevents the U.S. government and its contractors from using Huawei equipment. The complaint, filed in Plano, Texas, where Huawei's American operations are headquartered, alleges that the law singles out Huawei for punishment while denying the company due process.
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