In the latest turn of events surrounding both Huawei and the US government, it has been confirmed by the Trump administration that it will be cutting of Huawei’s supply of chips based on from global chipmakers. Such a decision will be yet another major blow for the company’s ambitions. Huawei’s chip supply will indeed be cut after US approves latest ban.
In accordance with the latest report, it has been suggested by the US Commerce Department that it aims to “strategically target Huawei’s acquisition of semiconductors that are the direct products of certain US software and technology.” Moreover, the department also said that the move “cuts off Huawei’s efforts to undermine US export controls.”
With such a rule in motion, all the foreign companies that proceed on with using US equipment will have to obtain a license from the government if they want to supply chips to Huawei or indeed any other companies that it affiliates with.
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The speculation for now concludes that the chips that have been produced for Huawei by such affected companies can still in fact be shipped to the Chinese manufacturer over the course of the nest 120 days.
For now, we haven’t exactly been hearing a lot from Huawei itself or any of its executives, but it won’t be too long before any one of them speaks up so as to render this new rule a bit too extreme.
Huawei currently sits at the sweet spot of being amongst the top five biggest smartphone companies in the world. Like always, the company has been very ambitious and still strives to be the biggest. With the latest ban enforced, one would have to imagine that things will only further get difficult for Huawei in this extremely competitive smartphone world, however, it has also shown us that it can counter any such moves over the course of the last year when the ban was first imposed! How it reacts now – we can only wait and see.
