US Reportedly Altering Rules To Restrict Huawei From Global Chip Supply

The US may be planning a rule-change to restrict Huawei from receiving their global chip supply, according to Reuters. If proven true, this would be the latest action taken by the Trump administration towards the Chinese company, along with imposing trade sanctions and advising allied countries against using Huawei’s technology.

Sources familiar with the matter told Reuters that foreign companies that are using US chip-making equipment would be required to obtain a license before supplying to the Chinese tech giant. Meanwhile, another source said that the rule-change would restrict the sale of newer or current generation semiconductors to Huawei.

Either way, this would certainly impact the company’s device production as most of its global chip supply are provided by manufacturers who use US chip-making technology. Reuters adds that US officials from various agencies have met and agreed to alter the Foreign Direct Product Rule, which subjects foreign-made goods.

The trade ban restricts Huawei from using Google’s services and software, therefore resulting in the company to devise alternatives for its smart devices. The Chinese brand recently launched their new flagship product, the Huawei P40 series, on 26 March 2020. The new smartphone line features the company’s own Huawei Mobile Services and App Gallery.

(Source: Reuters via CNA)

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