U.S. crackdowns on Huawei prompt chip stockpiling, proposed aid not enough: VLSI Research

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By Lisa Pauline Mattackal
(Reuters) - U.S. President Donald Trump's restrictions on China's Huawei Technologies Co Ltd have sparked widespread stockpiling of unsold product across the chip industry, and Washington's proposed aid to bolster the sector falls far short of what is needed to fill the gap, an analyst told Reuters.
"Under the surface, there's been lots of inventory build-up," Dan Hutcheson, chief executive officer of VLSI Research, told the Reuters Global Markets Forum on Monday.
"We're seeing integrated circuit inventory levels that are more typical in front of a downturn."
The Trump administration tightened restrictions on Huawei earlier in August, banning suppliers from selling chips made using U.S. technology to the Chinese telecom giant without a special license.
Amid ...


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