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ZTE is not allowed to buy Qualcomm chips for 7 years

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Following a decision by the US Department of Commerce, ZTE can't buy Qualcomm branded chips anymore.
ZTE is not allowed to buy Qualcomm chips for 7 years
ZTE is not allowed to buy Qualcomm chips for 7 years

According to reports, it punishes the Chinese brand for violating terms of a sanction violation case. Qualcomm can't sell good such as chipsets to ZTE for seven long years.

Last year, ZTE pleaded guilty for violate US sanctions by illegally shipping US-made goods and technology to Iran.

If the issue cannot be solved smoothly and immediately, we think that ZTE will face tremendous disaster and would be forced to scale back on its smartphone business, not only in the U.S., but also in other markets, said Strategy Analytics analyst Woody Oh.

A part of the ensuing settlement also made ZTE promise to fire four senior employees and discipline 35 others by reducing bonuses and reprimanding them.

ZTE fired the four senior employees, but it has not disciplined or reduced bonuses for the other 35. It's the trigger why this ban came to be.

This ban could mean that we won't see Qualcomm made chips to ZTE devices such as smartphones and other networking devices for 7 years.

Fortunately, there are still other very good chip makers like Intel and MediaTek.

What do you think guys?

Sources: GSMArena, Reuters
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