Trump administration will soon begin blocking Huawei's global chip supply

Huawei Logo
Huawei Logo (Image credit: Android Central)

What you need to know

  • U.S. will soon begin blocking shipments to Huawei from global chipmakers.
  • The announcement comes just a day after President Donald Trump extended the ban on Huawei and ZTE for another year.
  • Huawei could soon lose access to all semiconductors made using U.S. software and technology.

Just a day after the trade ban on Huawei was extended for another year by President Donald Trump, the U.S. Commerce Department has now announced that it is going to soon block shipments to Huawei from TSMC and other global chipmakers.

The U.S. is amending an export role that will enable it to "strategically target Huawei's acquisition of semiconductors that are the direct product of certain U.S. software and technology." Since all major chipmakers use American technology, the rule change will have a massive impact on Huawei's smartphone business. Taiwan's TSMC, which manufactures Huawei's Kirin chipsets, will also be affected by the move.

The rule change will make it mandatory for foreign companies using American chipmaking equipment to get a license from the U.S. before supplying specific chips to Huawei or any of its subsidiaries. Since the rule change is specifically targeted at Huawei's Kirin chips, it won't be able to get new chipsets tied to U.S. technology without a license from the Commerce Department.

As per Reuters, the U.S. will allow chips that are already in production to be shipped to Huawei or its affiliates within 120 days from Friday. However, the chipsets will have to be in production by Friday to be eligible under the rule.

If Huawei is forced to stop building chips, the entire industry suffers

Babu Mohan
News Writer
  • What a load of bullshīt.
  • fuzzylumpkin ******** my a*$. You moron you don't know anything about Huawei
  • Fully support this! Huawei is a huge security risk for governments /companies around the world using their networking equipment. Huawei is just an extension for the CCP government to gain access to more info
  • I look forward to your proof.
  • There's various articles out on the web explaining why Huawei /China are a big threat. It's already well known for years (20+) China and its domestic companies are constantly in engaged in continuous trade secret thefts of companies especially with American companies. Forsure the Chinese government would be given access to spy. China wants to dominate the world in everything so they're hungry to spy, steal to catch up and even get an advantage especially with the U.S
  • "articles out on the web" are not proof lol.
  • No surprise of this that China is at it once again trying to steal to be first.
  • I Just Love Murica Propaganda
  • Don't get him started guys, he'll start writing full page replies of his proof and opinions. Rinse and repeat on every Chinese brand especially Huawei... 😴
  • Exactly Dov you know it.
  • I suppose you believe the Russians and Chinese also don't participate in drug doping programs for their Olympic and sports athletes as well?
  • Both those countries are decieving and can't be trusted especially China.
  • You do know the US literally launched a space plane last night that’s mission is to spy on China right?
  • People like you tcukcufc don't read the news. What proof do you need? The CFO of that company was arrested because of "frauds"
  • Yeah because I really believe what the media and Trump tells me. All twisted .
  • Exactly! You can show the deniers proof, as you did, and they'll still deny it. It's a shame the new generation doesn't GAF about America.
  • And trump does not "GAF" about america either dummy. only about his pocket.
  • Lol no politician GAF about America they are all leeches. 
  • OMG you people are as bad and the Brexidiots in the UK who are also Trumptards because this Huawei ban is nothing more than Trump deciding he doesn't like Huawei and wanting to start a trade war with China there's no proof whatsoever that Huawei is a security risk and I'm not a Huawei fan either but they're being treated unfairly along with ZTE.
  • I'm not American and don't agree /like with alot of things he has said or done. But, there two I totally support one dealing with China (some reasons mentioned above) and the other halting funding to the WHO which is totally a different discussion from this but still relates to China's influence on them and why the virus had spread to the rest of world. If you actually go deeper not just what the media or Trump has been saying what China has been doing you ll know why China is a threat and why Trump has been calling them out. U.S is also not an angel here bec they allowed big businesses to take away manufacturering jobs over to China for cheap labour for more profits and agreeing to forced tech transfers just to get access to China's market. The U.S and the rest of the world need someone brilliant like Steve Bannon to deal with China and put a stop to what they re doing. This is a short 10min video explaining better. But there's a much longer 45min oh him really going into details and wow.
  • Good to hear!
  • Glad to hear !! Trump 2020 !
  • In the famous words of Morgan Freeman... "Good Luck". 😉
  • US cannot compete China so banning is the only option. Propaganda only works for short time.
  • U.S can and has been. It's China that can't that's why they ve been copying and stealing American companies trade secrets for the longest time. Forced IP technology transfers, state sponsored cyber attacks, rewarding employees on stealing info, pretend partnerships to learn the tech and acquiring U.S companies /start ups.
  • This has become like a guessing game of "will they... won't they" each and every time these announcements are made. It seems as if they depend on which side of the bed people wake if we don't have enough to deal with.
  • Again I ask why on earth does a capitalist nation such as America even do business with a communist nation?
  • They can’t afford not to
  • Trump is a moron, this is him wanting to go to war will China and nothing more. There's no proof about any security risk using Huawei equipment which I have on my internet. Thank goodness Boris Johnson isn't listening to Trump the dump on using Huawei for 5G in the UK.
  • I believe that it is all politics, and how the game is played between a current super power (the US) and a rising (China). Most people within the business can agree upon that no western government (the EU or Australia) has been presented with the smoking gun, where Huawei have been taken in sending privat information (other than what Google, CIA or NSA) normally pulls out of the network. We can agree upon that we might fear what they potentially can do, but it is speculations. All western countries like the UK, Germany and so on monitor Huawei on a daily basis, and nothing yet. We of course also know that the NSA is spying on all of it's western allies, just ask Angela Merkel and Snowden. The Huawei founders daughter is now for the 15. Month in house arrest in Canada for allocations of not showing a possible connection, to a US bank, between the company and a smaller company that sold tech to Iran, thereby maybe braking Trump's new sanctions on Iran. Please not that neither the UN or the rest of the world had these sanctions since they made a nuclear deal together with Obama and the rest of the world, the year before. I know that Huawei have been stealing tech in past years, and they have settled that in court with Cisco and others. Today their development department is bigger than Apples and they have more 5 G patents than any other company. They are developing a big part of the tech that China uses in military equipment (just like Boing and others) so I am inclined to believe that this is a political move more than anything else. Trump also tweeted that if China was willing to make a good trait deal with him, he would drop allocations against the founders daughter. So I guess that both the west and east have no problem in playing the dirty game. Call me ignorant but I just thought that we were supposed to be the "good guys" and show the rest of the world how it works.
  • China's rise and with it's domestic companies are nothing but from stolen IP, forced tech transfers, cyber attacks on specific industry companies, copying and trying to acquire U.S companies. Trump is trying to put a stop on China which has been benefiting for 20+ years from U.S companies research and development and that's why China needs to be stopped. Before they just ignored bec they weren't close in competition but in the last 5 yrs they really have stood out and bec of big businesses just caring about short term profits instead of long term visions has allowed China to catch up and surpass in certain areas like with 5G.
    The question is how do you know if Huawei's equipment is used the Chinese government /military wouldn't be given access to intercept info? Or bec of the capabilities that 5G brings access points could be given for much faster in and out sispisficated cyber attacks. And if China and U.S relations get worse further down the road maybe they can shut down certain telecommunications equipment and the U.S can't communicate with each other or anyone. And the same goes for it's allies not using their equipment. The U.S and it's allies are better off and alot of countries going with Nokia and Ericsson as their 5G provider.
  • There is no denying that the US at least has a case against Huawei. Whether they can prove it or not is another story, but Huawei is going to have to show up in court.