Acacia, Lumentum Gain As US To Lift Ban On ZTE Component Sales
08 Junio, 2018, 02:24 | Author: Arnold Perez
As part of the deal, sources said, ZTE promised to replace its board and executive team in 30 days. Published reports suggested that the ZTE ban had become a bargaining chip in the Trump Administration's trade negotiations with China.
That was a serious problem for ZTE because the company is heavily dependent on United States components for its smartphone business.
"We still retain the power to shut them down again", Ross said.
After President Trumpreached a deal with China's president Xi Jinping, the Department of Commerce now seems willing to remove that ban against ZTE.
Shares in NXP Semiconductors NV rose 3.8 per cent in early trading in NY after news of the ZTE deal was announced.
Under the terms of the settlement, ZTE is paying an immediate $1B fine, on top of the existing $892M in fines they've already paid related to their misconduct in this case. "No decision has been reached by both sides as of now", Kudlow told reporters.
Now, though, Reuters is reporting that a deal has been negotiated that would allow ZTE to get back in business with the export ban behind them, but with some big changes.
Thursday's agreement was "a prerequisite for making broader progress", DeBusk said.
U.S Senate Democratic leader Chuck Shumer quipped, "By letting ZTE off the hook, the president who roared like a lion is governing like a lamb when it comes to China".
The sanctions have prevented ZTE from receiving semiconductors and other components from suppliers including Qualcomm, Intel and Micron Technology, optical component suppliers Maynard, Acacia, Oclaro and Lumentum, as well as software suppliers Microsoft and Oracle, among others.
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