Death by a thousand cuts is the sentence the US has pronounced on Huawei. Its latest sanctions against the Chinese telecoms equipment group, which it accuses of spying, include blacklisting 38 affiliates in 21 countries. Without vital supplies of foreign chips, Huawei appears doomed. It is not suffering alone.

Shares of suppliers including Taiwan’s MediaTek and Novatek and China’s Sunny Optical fell as much as 10 per cent on Tuesday. Of them, MediaTek stands to lose most. The chipmaker came to Huawei’s rescue after Taiwan Semiconductor Manufacturing Company cut off shipments.

MediaTek, which gets most of its sales in China, had expected Huawei orders to increase more than fourfold this year. Gross margins improved to 43 per cent in the second quarter. Shares were at historic highs of 37 times trailing earnings. The stock of Sunny Optical, which supplies cameras for Huawei smartphones, were trading at 36 times.