Unshackled ZTE needs weeks to get business on track, sources say
China’s largest listed telecoms equipment maker is dealing with a worker shortage as it awaits shipments of key components from US suppliers
Telecommunications equipment maker ZTE Corp will take several weeks to get its business back on track after gaining its freedom from a game-ending US technology ban, according to people familiar with the matter.
The Shenzhen-based company is dealing with a worker shortage as it awaits shipments of key components from US suppliers like Qualcomm, the people said, asking not to be identified discussing internal matters.
That has hindered ZTE’s ability to get plants up to full speed and it may not hit peak capacity until August, they said.
Washington lifted its ban on ZTE’s purchase of US technology over the weekend, resolving a months-long moratorium that choked off crucial components needed by the Hong Kong-listed company to make telecoms networking gear and smartphones.
Investors have reacted with relief by sending the firm’s shares up more than 20 per cent, while China is said to be pushing domestic telecommunications network operators to consider boosting orders.
