The U.S. has suspended Huawei’s reachability to vital, modern computer chips, and hitting a lethal shock to an emerging Chinese tech giant.
Huawei dealt ‘lethal blow’ by new US sanctions on chip supply | @Sherisse https://t.co/6FuyxlbK6i
— State of the Union (@CNNSotu) August 18, 2020
On Monday, the United States Commerce Department declared recent consents that block every foreign semiconductor firm from trading chips produced or developed with the help of American software to Huawei, without receiving an authentic license to perform its operations.
Earlier limitations declared in May limited firms like TSMC (Taiwan Semiconductor Manufacturing Company) from making and delivering Huawei with semiconductor chips manufactured by HiSilicon, the Chinese firm’s chip subsidiary.
The US Commerce Department has announced fresh sanctions that restrict any foreign semiconductor company from selling chips developed or produced using US software or technology to Huawei, without first obtaining a license to do so https://t.co/s5NQYuAiHV
— CNN (@CNN) August 18, 2020
It’s a modern indication that Trump is increasing pressure on China when the U.S. and China clash over who manages the technologies for the upcoming days. Moreover, in the previous 3 weeks, President Trump administration has warned that restrictions on famous Chinese owned mobile apps, including WeChat and TikTok, and indicated that it would soon ban the working of Alibaba in the U.S.
Huawei didn’t respond to request for comment
But Huawei, Chinese tech giant, hasn’t responded to a request for leaving a comment in time for publication.
Head of geotechnology at Eurasia Group, Paul Triolo, called the recent restriction of the United States that a deadly blow to the most significant tech company of China.
On Monday, in a note, Triolo said that it is the most serious try by the American government to choke block the firm’s ability to get modern semiconductors for all its business lines.
The Chinese tech giant, Huawei, totally dependent on foreign-manufactured semiconductors to support its latest telecommunication (5G) gear. Besides this, a few British officials mentioned the uncertainty to the firm’s supply chain and citing it as a basic cause for blocking Huawei from the U.K.’s 5G infrastructure in the previous month.
The recent American limitations could be the last move by the United States to halt Huawei’s cell phone market. Furthermore, the Chinese tech giant hoped that it would go with 3rd party chip makers to keep their operations on by manufacturing cellphones.
