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(Reuters) - Micron Technology Inc shares rose as much as 10% on Tuesday as the memory chip maker said it had resumed some shipments to Huawei Technologies Co Ltd and still expected demand for its chips to recover later this year.
Chief Executive Sanjay Mehrotra said the Idaho-based maker of chips for smartphones and other devices resumed shipping some chips in the past two weeks after it reviewed the U.S. ban on selling products to the Chinese telecommunications company.
“We determined that we could lawfully resume shipping a subset of current products because they are not subject to export administration regulations and entity list restrictions,” Mehrotra said on a conference call with investors.
“However, there is considerable ongoing uncertainty surrounding the Huawei situation, and we are unable to predict the volumes or time periods over which we will be able to ship products to Huawei.”
For Micron’s fiscal third quarter ended on May 30, the company beat analysts’ estimates for quarterly revenue and profit. Mehrotra said Huawei was Micron’s No. 1 customer and that the ban cost the company as much as $200 million in missed sales during the third quarter.
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