Flextronics withdraws from Huawei’s supply chain and benefits Foxconn and BYD.

After the US Department of Commerce initiated sanctions against Huawei, the US foundry Flextronics and Huawei suspended cooperation. Flextronics once detained Huawei’s materials worth several hundred million yuan, and Huawei also removed it from the supply chain.

The Flextronics was originally a Huawei mobile phone, PC, etc. Who will fill this gap after the two sides have made a bad relationship?

According to CITIC Construction Investment Report, After the breakdown of the cooperation between Flextronics and Huawei, Huawei related orders were undertaken by OEMs such as Foxconn and BYD Electronics. AdditionalAccording to 21st Century Business Herald,Canalys analyst Jia Mo said that Flextronics has helped Huawei in different regions, such as India. Foxconn and BYD are the main takers, but because of their large scale, they have heard of Wentai and Longqi. Guanghong has taken over a part.

Bloomberg’s previous statistics show that Flextronics is the US company with the largest revenue from Huawei, and is also ranked among the top 10 global suppliers in Huawei. In 2018, Flextronics’ global revenues were around $26.2 billion, and Huawei’s $2.5 billion order accounted for about one-tenth of the total.

Flextronics is the third largest manufacturer of Huawei hardware products. The first two foundries are Foxconn and BYD. Flextronics’ revenue from Huawei is about 1/4 of that of Foxconn and 1/2 of BYD. After Flextronics and Huawei made a bad relationship, this part of the production capacity is likely to be transferred to Foxconn and Flextronics. Coupled with the high probability that Huawei’s mobile phone shipments will continue to rise in 2019, it is a double positive for the latter.

The previous Ren Zhengfei once raised the annual mobile phone shipments forecast to 270 million units, which is about 30% higher than that in 2018. At the recent Huawei Developers Conference, Yu Chengdong lowered his expectations and said that he is currently expecting the whole year. Shipments are 240 million units, but this is 16% higher than in 2018.

Also reported by the Securities Times,< Span> Benefited from the strong growth of domestic customer demand, Foxconn Shenzhen Longhua and Guanlan Park’s overall output value increased by 12% in the second quarter, and the output value in June increased by 4% in the same month, and quoted insiders as saying that the domestic market for May-June The output of the whole brand and machine components of H brand customers increased by more than 15% year-on-year.Combined with the above content, this is suspected of Foxconn’s acceptance of some of Flextronics’ orders.

In addition to Foxconn, BYD may also enter the market to take over part of Flextronics’ capacity.

The Flextronics factory in Changsha was originally built for the production of Huawei products. After the US ban, the factory was also shut down and put into production in less than a year. Coincidentally, June 11, Changsha BYD Electronics Co., Ltd. was incorporated, registered address and Flextronics Technology (Changsha) Co., Ltd. are located in Hunan Changsha City, Wangcheng District Economic and Technological Development Zone , intelligent consumer equipment manufacturing, production and sales of intelligent products.

The header image is from Huawei