Home Tech News US is trying to cut off Huawei's global chip supply, China threatens

US is trying to cut off Huawei’s global chip supply, China threatens

- Advertisement -

Things are heating up between the US and China – the US Department of Commerce is tweaking its export rule to “strategically target Huawei’s acquisition of semiconductors that are the direct product of certain US software and technology,” reports Reuters.

Last year, the Department of Commerce put Huawei on the so-called entity list, which effectively banned US companies from selling hardware and software to Huawei. A ban that was extended into 2021. Today, things got worse as the Commerce Secretary says that Huawei has been able to acquire US tech by buying from foreign producers that use it, circumventing the ban.

- Advertisement -

Once the new rule goes into effect, these foreign companies will require a license from US before they can supply chips to Huawei and its affiliates (this applies to companies that use chip making equipment from the US).

The US is trying to block Huawei from the global chip supply, China threatens retaliation

This clearly targets Huawei, but will also greatly affect TSMC, which fabs a significant portion of HiSilicon’s chips at its foundries. These chips end up in Huawei and Honor phones as well as Huawei telecom equipment.

The Taiwanese chip maker is currently talking to lawyers to see how the new rule will affect it. This news comes just a day after it announced a $12 billion deal to open a 5nm foundry in Arizona, but it’s too early to tell if that deal will be affected.

It’s not just TSMC that got caught in the crossfire either, a total of 114 Huawei affiliates have been blacklisted due to national security concerns.

China is already threatening retaliation, including investigations and possible restrictions on Apple, Cisco and Qualcomm, who rely on Chinese factories. It may also suspend the purchase of Boeing planes.

These companies may face trouble on two fronts as President Trump threatened to impose taxes on companies that manufacture their products abroad, specifically name-checking Apple.

Source

alltechng
alltechng
Technology is making life more meaningful, improves productivity... We are tech lovers...

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Must Read

video

Huawei P50 Pro – First Look | HarmonyOS 2.0 Update

Huawei P50 Pro - First Look | HarmonyOS 2.0 Update... So Here is persumably our first best look at to the upcoming Huawei P50 Pro...
video

Asus Zephyrus G14 – 10 Things You Should Know

Asus Zephyrus G14 - 10 Things You Should Know...  
video

Windows 21 – 2021

Windows 21 - 2021  
video

iPhone 12 Yellow Displays and Green Tint? – Display Comparison

iPhone 12 Yellow Displays and Green Tint? - Display Comparison....  
video

Samsung Galaxy S21 Ultra vs Huawei Mate 40 Pro Plus

Samsung Galaxy S21 Ultra vs Huawei Mate 40 Pro Plus... 7 Cool New One UI 3.0 Features! The First Folding Screen Tablet! The Fastest Gaming PC is...
error: Alltechng Content is protected !!