According to the Beijing News and other domestic media reports, on the evening of May 15th, Beijing time, the Bureau of Industrial Security (BIS), which is responsible for export control under the US Department of Commerce, issued a notice to extend the temporary general license (TGL) for Huawei and its affiliated companies on the Entity List for 9 days to August 14th.

Meanwhile, the US Department of Commerce said in another announcement that it plans to protect US national security by restricting Huawei's ability to design and manufacture semiconductors abroad using US technology and software.

over the weekend, many brokers commented on the impact of the U.S. upgrade on Huawei.

citic securities pointed out in the research report that Huawei may face short-term supply interruption, but it can be reasonably inferred that Huawei stockpiled a large number of related components and products in 218 and 219 in case of emergency. Although there will be some pressure in the short term, the high probability will not lead to a complete stop of supply.

guosheng securities also pointed out that Huawei has been preparing for this, and even if the most pessimistic thing happens, Huawei will be able to operate normally.

specifically, Huawei has made two major preparations in the past few years: on the one hand, it began to increase its inventory in 18 years, and its inventory level continued to increase by more than 1% year-on-year in 19 years, and its core components were fully stocked; On the other hand, we have increased localization and non-A supply chain transfer, and C board products (excluding American chips) have been shipped in various product lines.

In addition, although the US has once again upgraded the restrictions on Huawei's technology export. However, the giants of semiconductor industry chain at home and abroad are still increasing their investment in China market.

on may 15th, SMIC, which has been booming in the A-share market recently, announced that SMIC, a wholly-owned subsidiary of the company, has entered into a new joint venture contract and a new capital increase and share expansion agreement with State Integrated Circuit Fund, State Integrated Circuit Fund II, Shanghai Integrated Circuit Fund and Shanghai Integrated Circuit Fund II, and the second phase of State Fund will inject 1.5 billion US dollars into the company.

guosheng securities said that the severe environment will force a stronger Huawei and domestic chain, and domestic substitution is about to usher in the best era.

Attached is a list of core enterprises of Huawei's ecological chain: