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Confirmed: US approves measure to cut HUAWEI's chip supply
The US government has revealed that it will cut off HUAWEI’s supply of chips from global chipmakers, dealing another major blow to the Chinese device manufacturer.
According to Reuters, the US Commerce Department said it would “strategically target HUAWEI’s acquisition of semiconductors that are the direct product of certain US software and technology.” The department further claimed that the move “cuts off HUAWEI’s efforts to undermine US export controls.”
The rule change will force foreign chipmakers using US equipment to obtain a license from Washington if they want to supply chips to HUAWEI or affiliated companies.
Do you think this latest measure against HUAWEI is a step too far?
Reuters reports that chips produced for HUAWEI by affected companies can still be shipped to the Chinese brand within 120 days. However, these HUAWEI chips would need to be in production by today (Friday, May 15).
We’ve contacted HUAWEI for comment regarding the latest rule change and will update the article if/when they respond. Nevertheless, this move is a massive blow to the firm, as it’s reliant on chips from the likes of Taiwan’s TSMC for its smartphones.