Micron Technology Inc mentioned that it is expected recovery in 2020 after getting down in the second quarter and that it had received all requested licenses to supply some products to Huawei.
Due to the Huawei entity list in May, Micron faced lots of issues. By this Huawei licenses comes amid a tepid forecast for the second quarter, but Chief Executive Sanjay Mehrotra said he expected the business to recover in the third quarter of fiscal 2020.
“Recent trends in our business give us optimism that our fiscal second quarter will mark the bottom for our financial performance … with continued recovery in the second half of calendar 2020,” Mehrotra says.
The licenses are not expected to have a material impact on the company’s revenue in the next couple of quarters, Micron said. Sumit Sadana, Micron’s chief business officer, told Reuters in an interview it would take time for Micron to work with Huawei to make sure its chips work in Huawei’s newest phones.
“We believe that we’ll be able to get back to working with them and qualifying our products, and then within a few months, we should be in a much better place – assuming of course that no changes occur in terms of the U.S. trade policy as it relates to Huawei,” Sadana said.
