US cuts off Huawei lifelines to foreign chips

New ban extends to semiconductors and components based on American technology

Nikkei Asian Review
Date: August 18, 2020
By: CHENG TING-FANG and LAULY LI, Nikkei staff writers

The U.S. further restricted Huawei’s access to chips produced from American technology and software.   © Reuters

TAIPEI — Huawei Technologies was the subject of an unprecedented crackdown by the U.S. government on Monday, as Washington further limits the Chinese tech giant's ability to buy standardized chips and other electronic components from non-American suppliers.

The latest rule — which would choke Huawei's supply chain continuity — forbids Huawei from obtaining foreign-made chips either developed or produced from American software or technology, a U.S. Commerce Department announcement said.

The rule, which takes effect immediately, could further restrict key non-American Huawei suppliers from selling crucial semiconductors to China's biggest tech company.

Mobile chip developer MediaTek, image sensor provider Sony, sensor supplier STMicroelectronics, as well as key memory chipmakers Samsung Electronics, SK Hynix, Kioxia, Nanya Tech and many Asian, European and domestic Chinese chip developers may all have to abide by the rules if their chip development involves U.S. software and technologies, legal experts and market watchers said.    [FULL  STORY]

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