Xu Zhijun: Panic stockpiling leads to tight supply, calling for restoration of trust in the industry chain

Today, at the "Huawei 2021 Global Analyst Conference" held in Shenzhen, Huawei's Vice Chairman and Rotating Chairman Xu Zhijun said in his speech that the global panic stockpiling caused by US sanctions on Huawei is the core factor leading to the recent supply tensions and shortages in the semiconductor industry.

Xu Zhijun said that the United States has imposed sanctions on Huawei three times in the past two years, which has caused great harm to Huawei, but has also caused greater harm to the global semiconductor industry, which has undermined the trust system of the global semiconductor industry chain. At the same time, the sanctions have caused panic stocking around the world, especially for Chinese companies, which have been forced to change their existing stocking strategies to cope with industry uncertainties, which is contrary to the original intention of the semiconductor industry to strive for zero inventory in the supply chain for many years.

"The panic stockpiling caused by sanctions on Huawei is the core factor causing tight supply and shortage of semiconductors," said Xu Zhijun.

Xu Zhijun said that supply shortages are now spreading throughout the industry, and it is still unknown whether it will trigger a new supply crisis in the future, but the person who tied the bell must untie it. He hopes that global industrial cooperation can be restored as soon as possible and global trust can be rebuilt.