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The dominoes keep falling – Flex halts shipments to Huawei
EMS provider Flex, formerly Flextronics, has reportedly halted production at its China plant in Zhuhai, Guangdong province.
The addition of Huawei Technologies Co. Ltd. and its affiliates to the so called “Entity List” by the US Bureau of Industry and Security (BIS), has sent ripples through the electronics industry and the domino tiles are still moving. One of Huawei’s smartphone assemblers, Flex, has reportedly halted some of its production for the Chinese company, two sources told the Nikkei Asian Review. Three out of the factory’s four production lines are said to have stopped running and employees were asked to take a week off, according to Asia Times. But its not just in China were Flex’s operations have been affected by the ban. In India, where the manufacturer operates three facilities, Flex is said to have stopped shipments to Huawei in order to comply with the addition of Huawei to the Entity List, reports India’s Economic Times. Flex began making smartphones for Huawei back in 2016 at its plant in Sriperumbudur, near Chennai, but has manufactured for other customers – such as Lenovo, including Motorola-branded phones – at the Chennai plant. But the ban will reportedly also affect India shipments. In a statement to the Economic Times, Brian Kemp, a spokesperson for Flex, said that the company is continuing to evaluate the Entity List regulatory amendment and will make sure that the company remains in compliance with US and all other trade laws. “While we’re reviewing the details of the order and its implications, we have stopped shipments globally to Huawei and its affiliates until further notice,” Mr. Kemp told ET .