US chip giants Intel, Qualcomm, Broadcom and Xilinx have also pulled off from supplying vital components for Huawei devices.
Huawei’s bad weekend is turning worse , it’s not even been a day since Google announced that it was pulling off support for some of its services from being accessed by Huawei devices than we have more news on that front.
The chipmakers Intel, Qualcomm, Broadcom and Xilinx have told their employees that they will not be providing Huawei with supplies until further notice.
Intel provides Huawei with server chips and the processors for its laptop line, while Qualcomm figures less prominently in providing modems and other processors. Huawei’s actually quite well insulated from the Qualcomm impact, as it builds its own mobile processors and modems
Nikkei reports that German chipmaker Infineon Technologies has also suspended shipments to Huawei, as have US memory chip makers Micron Technology and Western Digital.
“Infineon decided to adopt a more cautious measure and stopped the shipment. But it will hold meetings this week to discuss [the situation] and make assessments,” said one source speaking to Nikkei.
This ban could prevent the quicker rollout of 5G networks in China as Huawei is heavily dependent on US semiconductor products.
But a report from Bloomberg suggests Huawei has also been preparing for this eventuality by stockpiling chips from US suppliers to last it at least three months, which should be enough time to tell if the current measure is a scare tactic or a permanent imposition from the US government.
Huawei has been under the US government’s crosshair for years, accused of aiding the Chinese government in espionage.
These restrictions are to comply with the Trump administration’s blacklisting of Huawei and 70 affiliate companies from dealing with US companies. Under the order, Huawei will need a US government license to buy American technology.
This decision is the culmination of the Trump administration’s reservations against using Huawei’s next-generation 5G networks as it feels that Huawei’s close ties with the Chinese government could be detrimental and lead to cyber espionage.
Trump administration also imposed new tariffs on Chinese goods amid an escalating trade war.