First U.S. layoffs due to Huawei blockade

NeoPhotonics has lost $40M in quarterly sales to Huawei, a brutal blow to a company with quarterly sales of ~$100 million. They promise “appropriate expense adjustments and structural actions to mitigate the impact of revenue declines.” That almost definitely means they will fire a lot of people.

NeoPhotonics makes some of the best optical components in the world, important for 400 gigabit transmission. Huawei makes most of its own optical parts and will probably soon develop an alternative.

I suspect Huawei’s purchases were especially high as they stock up to withstand the U.S. blockade.

Here’s the official announcement

NeoPhotonics preps for life without Huawei

SAN JOSE, Calif. – NeoPhotonics Corporation, a leading developer of silicon photonics and advanced hybrid photonic integrated circuit-based lasers, modules and subsystems for bandwidth-intensive, high speed communications networks, today provided a business update following the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) updated actions on August 17, 2020.

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