According to the Beijing News and other domestic media reports, on the evening of May 15, Beijing time, the Bureau of Industrial Safety (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 90 days to August 14 days.

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

Many brokers commented on the impact of the US upgrade on Huawei over the weekend.

Citic Securities pointed out in the research report that Huawei may face short-term supply failure, but it can be reasonably inferred that Huawei has hoarded a large number of related components and products in 20 18 and 20 19 for emergencies. Although there will be some pressure in the short term, the high probability will not lead to a complete stop of supply.

Guo Sheng Securities also pointed out that Huawei has been preparing for this, and even if the most pessimistic things happen, Huawei can operate normally.

Specifically, Huawei has mainly made two preparations in recent years: on the one hand, it began to increase its inventory from 18, and the inventory level of 19 continued to increase by more than 100% year-on-year, and the 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 United States has once again upgraded its restrictions on Huawei's technology exports. However, domestic and foreign semiconductor industry chain giants are still increasing their investment in China market.

On May 15, SMIC, a hot-selling company 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 the State Integrated Circuit Fund, the State Integrated Circuit Fund II, and the Shanghai Integrated Circuit Fund II, and the State Fund will inject US$ 6,543.805 billion into the company in the second phase.

Guo Sheng 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 the list of core enterprises of Huawei's ecological chain: