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Major US chipmakers reportedly cut ties with Huawei after blacklist

Written by Mon 20 May 2019

Google is also preventing the telecommunications giant from accessing some of its services

US chipmakers are reportedly cutting ties with Huawei following the company’s inclusion into the Trump administration’s trade blacklist last Friday.

According to Bloomberg, semiconductor companies Intel, Qualcomm, Xilinx and Broadcom have halted supply to Huawei indefinitely. Google has also halted some trade with Huawei, restricting the company’s access to the Google Play store and future Android updates.

Bloomberg claims Huawei stockpiled three months worth of chips in anticipation of a trade ban, following escalating hostilities surrounding the security of its telecommunications equipment. Huawei has repeatedly denied that its components pose a threat to US national security.

On Monday, a report in Japan’s Nikkei Asian Review claimed Infineon, one of Europe’s largest chipmakers, had suspended deliveries to Huawei. Infineon has denied the report and said the majority of the products it sells to Huawei are not subject to the ban. Fellow European supplier AMS said that it has not suspended shipments to Huawei either.

5G freeze?

Back home in China, Huawei is the vendor of choice for most telecom providers, many of which may now have to delay their planned 5G rollouts until Huawei can resume trade with US companies.

European government officials reportedly told Asia Times that the US ban will not stop the company from rolling out 5G mobile networks in Europe, as Huawei’s biggest competitors on the continent – Ericsson and Nokia – lack the capacity or knowledge to be viable suppliers, and the US itself is not home to any competitor of note.

Written by Mon 20 May 2019


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