Huawei, which is currently going through a bad time the company has ever faced, and now it is getting even worse. After companies like Google, Intel, Qualcomm, Broadcom, and Xilinx cut-off business ties with Huawei because of the executive order signed by Trump blacklisting the Chinese telecom giant.
Now, UK-based chip designer ARM is reportedly suspending its business with Huawei. According to the internal documents accessed by BBC, ARM has instructed employees to halt “all active contracts, support entitlements, and any pending engagements” with Huawei and its subsidiaries to comply with a recent US trade clampdown.
According to the memo, the company informed its staff that they were no longer allowed to “provide support, delivery technology (software, code, or other updates), engage in technical discussions, or otherwise discuss technical matters” with Huawei.
This seems like a major blow to Huawei as ARM’s designs form the basis of most mobile device processors worldwide. Even though the company is UK-based, in a memo, it said its designs contained “US-origin technology”. Thus, the company believes it is affected by the Trump administration’s ban.
This would greatly affect the company’s ability to develop its own chips, many of which are currently built with ARM’s underlying technology, and Huawei is paying a license fee for the same. In a statement, Huawei said: “We value our close relationships with our partners, but recognize the pressure some of them are under, as a result of politically motivated decisions. We are confident this regrettable situation can be resolved and our priority remains to continue to deliver world-class technology and products to our customers around the world.”
ARM does not manufacture computer processors itself but licenses its semiconductor technologies to others. Sometimes, manufacturers only license ARM’s architecture, or “instruction sets”, which determine how processors handle commands.
Also Read: Huawei vs USA — All you need to know about this trade war
The UK-based company’s staff were informed of the decision on May 16, after the United States added Huawei to a list of companies with which U.S. firms cannot do business. In the US, ARM has offices in California, Washington, Texas, and Massachusetts.
