What happened: German chipmaker Infineon on Monday said it would continue to supply Huawei with components following a Nikkei report saying it would need to halt deliveries of products originating in the US due to a Trump administration blacklist of the telecom giant last week. An Infineon spokesman said most products it delivers to Huawei are not subject to US restrictions. The company is one of Europe’s biggest chipmakers and said it could make adaptions in the international supply chain to ensure deliveries. Another European semiconductor company AMS also maintained that it would continue business relations with Huawei.
Why it’s important: Shares of Infineon, whose annual sales to Huawei account for 1.3% of its sales according to Bloomberg, fell as much as 6% in Frankfurt on Monday following the reports. Still, global stock markets in the US, Europe, and Asia rose on Tuesday after the US government temporarily eased the Huawei ban, signaling that concerns about Washington’s crackdown extend beyond the US and China. So far, US tech companies including Google, Intel, and Qualcomm have suspended supplies of key components, software licenses, and technical services to the Chinese telecom giant. Infineon also admitted that it has to stop shipping the American-made products to Huawei, reported Xinhua News Agency citing a spokesman.