It was down to an investment note from Roth Capital Partners, to point out that Huawei has ceased selling grid scale inverters in the US. Huawei is the largest manufacturer of inverters in the world, and we had to put up with US officials talking nonsense about how China could suddenly take over the US grid if Huawei was allowed to continue selling inverters.
Huawei will now have to lay off its US workforce, despite having only just employed them, entering the market earlier this year. It may maintain some technical support staff.
In the end there was no need to ban the inverters, no developer in his right mind is going to install something that he may be told to get rid of by the government, halfway through installation and the very discussion of the ban, was enough.
The US ban on Huawei 5G equipment is going to put back 5G development two years, and hand all the business to Nokia and Ericsson, because there are no US firms capable of acting as integrators for 5G. American operators will likely pay more because of it.
In February 11 US senators asked the Energy Secretary and the Homeland Security Secretary to ban Huawei inverters and we pointed out at the time that not one of the 11 had a science subject in his or her degree but somehow felt qualified to say what would represent a “security danger.”
Add to that the trade war going on between China and the US and Huawei’s position was untenable. If American’s imagine that everyone else in the world will stop relying on Huawei for their 5G, they have no idea how attractive the Huawei deals are. Same, were are sure, for their inverters.