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Eurobites: US Huawei Ban Hits European Chipmakers

Paul Rainford
5/20/2019

Also in today's EMEA regional roundup: France resists US pressure to play hardball with Huawei; lampposts row threatens UK's 5G rollout; ADVA lands Openreach cell site gateway gig.

  • Washington's ban on companies supplying components to Huawei appears to have hit the share prices of two European chipmakers hard. As Bloomberg reports, Dutch firm STMicroelectronics saw its valuation dip by as much as 4% in Paris in early trading Monday, while Germany's Infineon dropped 3.9% in Frankfurt. Bloomberg data shows Huawei accounting for 2.35% of STMicro and 1.3% of Infineon revenue. And, in a further development, Reuters (citing Nikkei Asian Review) says Infineon has suspended shipments to Huawei. (See Google & Tech Giants Cut Huawei Adrift and Huawei vs. Trump & the Casualties of War.)

  • Huawei might increasingly be regarded as a pariah by the US authorities, but that stance doesn't appear to be influencing key global allies as much as it would like. In France, President Macron has made it clear that, at least for now, there are no plans to single out Huawei, or any other company, for any special treatment, Bloomberg reported. Macron even went as far as to suggest that his view is shared on the continent: "France and Europe are pragmatic and realistic. We do believe in cooperation and multilateralism," he is quoted as saying at a technology event in Paris last week. That certainly reflects the view in Germany, which has held out against US pressure to restrict Huawei, but it's unclear how Chinese vendors will ultimately be treated in the UK, where dithering and uncertainty seem to be the order of the day with regards to decisions of significant importance. (See Eurobites: Germany Offers Hope to Huawei, Eurobites: UK Security Report Says Huawei Can't Be Trusted and Huawei Urges US to Adopt German Approach to Security.)

  • The 5G rollout in the UK is being threatened by legal disputes over who controls the access rights to lampposts, the Guardian reports. According to London's chief digital officer, Theo Blackwell, ambiguous wording in a new electronics communications code is largely to blame for the deadlock, which is delaying the deployment of transmitters on lampposts and other "street furniture."

  • Assuming it can get the necessary lamppost permissions, Openreach, BT's quasi-autonomous network access division, is to use ADVA's FSP 150-GO102Pro Series cell site gateway device to help mobile network operators roll out small cell services in the UK.

  • A new study by UK-based Juniper Research predicts that smart-city traffic technology intended to ease congestion on the roads will generate $4.4 billion in revenue in 2023, up from $2 billion in 2019. The Juniper number-crunchers also reckon that such smart-city offerings, which typically use a combination of sensors and machine-learning algorithms to control traffic-light phasing, will save the equivalent of more than 780 billion passenger vehicle miles' worth of greenhouse gas emissions over the forecast period.

    — Paul Rainford, Assistant Editor, Europe, Light Reading

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