( Reuters) – Senior authorities in the Trump administration consented to new steps to restrict the global supply of chips to China’s Huawei Technologies, sources familiar with the matter stated, as the White Home increases criticism of China over coronavirus.
SUBMIT PICTURE: A Huawei business logo design is visualized at the Shenzhen International Airport in Shenzhen, Guangdong province, China July 22,2019 REUTERS/Aly Song/File Photo
The move comes as ties between Washington and Beijing grow more stretched, with both sides trading barbs over who is to blame for the spread of the disease and an escalating tit-for-tat over the expulsion of journalists from both nations.
Under the proposed rule modification, foreign companies that utilize U.S. chipmaking devices would be required to obtain a U.S. license before supplying specific chips to Huawei. The Chinese telecoms company was blacklisted in 2015, limiting the company’s providers.
One of the sources stated the rule-change is focused on suppressing sales of chips to Huawei by Taiwan Semiconductor Manufacturing Co, a significant manufacturer of chips for Huawei’s HiSilicon unit, along with the world’s biggest contract maker.
It is uncertain if President Donald Trump, who appeared to push back versus the proposal last month, will approve the rule modification. However if completed, it could