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  • Tue. Nov 5th, 2024

Exclusive: U.S. moves to cut Huawei off from worldwide chip suppliers

Exclusive: U.S. moves to cut Huawei off from worldwide chip suppliers

WASHINGTON (Reuters) – The Trump administration on Friday moved to block shipments of semiconductors to Huawei Technologies from worldwide chipmakers, in an action that might increase tensions with China.

SUBMIT IMAGE: The Huawei logo is seen on a communications device in London, Britain, January 28,2020 REUTERS/Toby Melville

The U.S. Commerce Department stated it was amending an export guideline to “strategically target Huawei’s acquisition of semiconductors that are the direct product of particular U.S. software application and technology.”

The department included the “statement cuts off Huawei’s efforts to weaken U.S. export controls.”

The guideline modification is a blow to Huawei, the world’s no. 2 mobile phone maker, along with to Taiwan’s TSMC (2330 TW), a major producer of chips for Huawei’s HiSilicon unit in addition to cellphone competitors Apple Inc ( AAPL.O) and Qualcomm Inc ( QCOM.O).

Huawei, which needs semiconductors for its extensively utilized mobile phones and telecoms equipment, is at the heart of a battle for worldwide technological dominance between the United States and China.

The United States is trying to encourage allies to exclude Huawei gear from next generation 5G networks on grounds its equipment might be used by China for spying. Huawei has actually consistently rejected the claim.

Huawei has actually continued to use U.S. software and innovation to create semiconductors, the Commerce Department said, despite being plac

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