NewsTechThe US looking to further limit Huawei chip supply...

The US looking to further limit Huawei chip supply and manufacturing chain


- Advertisment -

The US looking to further limit Huawei chip supply and manufacturing chain

Hot on the heels of yesterday’s unveiling of the Huawei P40 flagship line, the Chinese giant might just have to brace for even more setbacks from the ongoing US-China trade war and consequent sour relations.


As per a report by Reuters, US officials from various agencies met on Wednesday to discuss alterations to the Foreign Direct Product Rule. For the most part, that’s the legal framework that allows the US to regulate certain foreign-made goods that are based on US technology or software.

- Advertisement -

Up until now, this set of rules has been successfully leveraged to keep certain Huawei and subsidiary hardware and equipment, including smartphones, off of US markets in varying degrees. The US has been coupling these efforts with an ongoing campaign with its allies to limit Huawei’s global involvement in 5G infrastructure projects. The main justification being spying concerns.

Throughout all this, Huawei has managed to flex some impressive muscle and work around many of the restrictions, especially solidifying its domestic market positions to insure its future. Clearly, a move not particularly enjoyed by certain US officials.

- Advertisement -

As per the source, these new alterations to the Foreign Direct Product Rule will require foreign companies that use US chip making equipment to obtain a specific license, before they can supply chips to Huawei.

The US might be working to further cripple Huawei chip supply and manufacturing chain

Some analysts believe this move is specifically aimed at the relations between Huawei and its own HiSilicon in-house division and the TSMC foundry – manufacturer of a large portion of modern ARM SoC units. Apparently, TSMC, as well as most chip manufacturers utilize equipment in their fabs from US companies, such as KLA Corp, Lam Research and Applied Materials.

If the new rules do come into effect, Huawei might actually be forced to re-work a large part of its supply chain, to even get its Kirin chipsets manufactured for domestic use. As per our understanding, on a more positive note, it’s just the sophisticated SoC components that will likely be affected, with cheaper, mode common chips not affected by the new regulations.

- Advertisement -

The US might be working to further cripple Huawei chip supply and manufacturing chain

Naturally, US and China relations, as a whole, have been further complicated recently by the ongoing COVID-19 pandemic. However, president Trump’s most recent statements on the subject of the Huawei scandal have been signaling a readiness to re-negotiate terms and restore business relations. Presumably, in no small part due to fears that stricter regulations might just end up hurting the US economy quite badly. It’s still early to say, then, whether these new changes to the Foreign Direct Product Rule will even be signed-off on and see the light of day.

Get Your News on

Send us your business and entrepreneurship stories/news and articles to or through whatsapp, +233247516850.

Subscribe to our Youtube Channel, Like our Facebook Page

And also follow us on Twitter

- Advertisement -


Please enter your comment!
Please enter your name here

Latest news

Bybit Wins the Most Transparent Exchange at Crypto Expo Dubai 2021 

Bybit, one of the world’s fastest growing cryptocurrency exchanges, has clinched the “Most Transparent Exchange” award at Crypto Expo...

Checkout The Smart Bottle That Cleans Our Oceans

Big Ocean Bottle is a smart bottle that helps clean our oceans. The water bottle directly funds ocean plastic...

You don’t have to die poor

You didn’t choose your background, but to a large extent, you determine your destiny through your mindset and the...

Vodafone connects its customers with Thales’ Eco-SIM card

Thales to supply Vodafone Group with Eco-SIM; a product whose card body is made out of 100% recycled plastic...
- Advertisement -

Not every criticism is a HATE SPEECH!

Not every criticism is a HATE SPEECH!We love the applause.We all love the praise singing.We smile when we are...

African Parliamentarians unpack Africa’s Sanitation problem

Access to water and sanitation remains a luxury for most people in Africa. African parliamentarians are ensuring that this luxury...

Must read

- Advertisement -

You might also likeRELATED
Recommended to you